Cenovus Energy stock rating reiterated at Buy by TD Cowen

Published 13/08/2025, 16:14
Cenovus Energy stock rating reiterated at Buy by TD Cowen

Investing.com - TD Cowen has reiterated its Buy rating on Cenovus Energy Inc. (TSX:CVE) (NYSE:CVE) with a price target of C$27.00. According to InvestingPro analysis, the stock appears undervalued at its current price of $14.93, with a market capitalization of $26.8 billion.

The firm indicated that Cenovus’s second-quarter results have addressed most investor concerns about the company, maintaining its status as a top pick in the energy sector. InvestingPro data shows the company maintains a FAIR financial health score, with strong EBITDA of $6.2 billion over the last twelve months and a consistent dividend yield of 3.92%.

TD Cowen highlighted that with major U.S. downstream maintenance now complete, costing approximately $900 million over an 18-month period, Cenovus is positioned to demonstrate its U.S. downstream capabilities in the third quarter.

The research note pointed out that the first of several free cash flow generating upstream projects, Narrows Lake, is now operational, while the West White Rose project is scheduled to produce its first oil in the second quarter of 2026.

According to TD Cowen’s estimates, these developments will trigger a free cash flow inflection in 2026 and beyond, with projected capital expenditure of $4.1 billion in 2026, representing a $700 million decrease year-over-year.

In other recent news, Cenovus Energy reported impressive financial results for the second quarter of 2025, significantly outperforming analysts’ expectations. The company achieved an earnings per share of $0.33, which was a substantial increase over the anticipated $0.09, resulting in a 276.2% surprise. Revenue figures also surpassed projections, reaching $10.51 billion compared to the expected $8.68 billion, marking a 21.08% surprise. These developments highlight the company’s robust financial performance during this period. There were no additional updates regarding mergers or acquisitions. Analyst firms have not provided any recent upgrades or downgrades for Cenovus Energy. Investors may find these earnings and revenue results noteworthy as they reflect the company’s current financial health. These recent developments provide a factual basis for understanding Cenovus Energy’s performance in the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.