Raymond James upgrades Cenovus Energy stock rating to Strong Buy

Published 09/10/2025, 12:34
Raymond James upgrades Cenovus Energy stock rating to Strong Buy

Investing.com - Raymond James upgraded Cenovus Energy Inc. (TSX:CVE) (NYSE:CVE) from Outperform to Strong Buy and raised its price target to C$32.00 from C$30.00. The stock, currently trading at $17.69 and near its 52-week high, has shown strong momentum with a 50% return over the past six months. According to InvestingPro analysis, the company maintains a healthy financial profile with a "GOOD" overall score.

The upgrade reflects Raymond James’ updated model that now incorporates Cenovus Energy’s planned acquisition of MEG Energy. The firm expressed confidence that the acquisition deal will be completed.

Raymond James also revised its estimates based on Cenovus Energy’s recent operations update and noted a more constructive outlook for the company’s refining business.

The firm cited what it "increasingly sees as the best risk-adjusted return in the space" as a key factor in its decision to upgrade the Canadian energy producer’s stock rating.

The new C$32.00 price target represents an increase of C$2.00 from Raymond James’ previous target of C$30.00 for Cenovus Energy shares.

In other recent news, Cenovus Energy reported impressive financial results for the second quarter of 2025, with earnings per share hitting $0.33, significantly surpassing the anticipated $0.09. This represented a notable 276.2% surprise. Revenue also exceeded expectations, reaching $10.51 billion compared to the projected $8.68 billion, marking a 21.08% surprise. Additionally, Cenovus Energy has amended its acquisition agreement with MEG Energy, increasing the offer to $29.80 per MEG share, up from the original proposal. The revised terms allow MEG shareholders to choose between cash or Cenovus shares, with the total consideration capped at $3.8 billion in cash and 157.7 million Cenovus shares. In another strategic move, Cenovus has agreed to sell its 50% interest in WRB Refining to Phillips 66 for $1.4 billion in cash, with the transaction expected to close by the end of the third quarter. Furthermore, TD Cowen has reiterated its Buy rating for Cenovus Energy, citing the company’s strong second-quarter results as addressing most investor concerns.

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.