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Ovintiv (NYSE:OVV) +3.5% in Tuesday’s buying and selling as J.P. Morgan upgraded shares to Chubby from Impartial with a $64 value goal, raised from $56, citing a reduced valuation and elevated confidence that was conveyed finally week’s J.P. Morgan 2022 Vitality, Energy and Renewables convention.
Ovintiv (OVV) shares are buying and selling at a 33% free money circulation yield based mostly on 2023 estimates, JPM analyst Arun Jayaram stated, which might be the fourth highest yield within the E&P sector, and the third highest return of capital yield within the area at 17.4%.
Whereas Ovintiv (OVV) has been buying and selling at a reduced a number of all through 2022, Jayaram believes a number of the H1 2022 challenges the corporate skilled within the area – equivalent to weaker crude and condensate output, greater FY 2022 capex and the Montney allow moratorium – that led to his extra cautious stance on the inventory earlier needs to be within the rearview mirror close to time period.
The corporate may return ~$1B to shareholders in 2022 when it achieves its $3B deleveraging purpose, Jayaram additionally stated.
Ovintiv (OVV) is benefiting from “a surprising effectivity marketing campaign that has seen a 50% discount in GHG emissions, a 44% enhance in dividends, and an estimated 35% free money yield for FY 2023,” Benjamin Halliburton writes in a bullish evaluation posted lately on In search of Alpha.
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