Gerdes Energy Research Upgrades Cenovus Energy (NYSE:CVE) to Buy

Key Points

• Gerdes Energy Research upgraded Cenovus Energy to “buy” from “neutral” and set a $50 price target, implying 52.05% upside from the previous close.
• Analyst sentiment is broadly positive: Cenovus has a consensus “Moderate Buy” rating and an average target price of $39, with 13 analysts rating it Buy or Strong Buy.
• Cenovus reported quarterly EPS of $1.11, in line with estimates, while revenue reached $14.59 billion—up 47.9% year over year and above expectations.

Cenovus Energy (NYSE:CVE - Get Free Report) TSE: CVE was upgraded by investment analysts at Gerdes Energy Research from a "neutral" rating to a "buy" rating in a report released on Wednesday, BayStreet reports. The brokerage presently has a $50.00 price objective on the oil and gas company's stock. Gerdes Energy Research's target price points to a potential upside of 52.05% from the stock's previous close.

Several other research analysts have also recently commented on CVE. Raymond James Financial cut Cenovus Energy from a "strong-buy" rating to an "outperform" rating in a research report on Wednesday, May 6th. Canadian Imperial Bank of Commerce reaffirmed an "outperform" rating on shares of Cenovus Energy in a research report on Thursday, August 27th. The Goldman Sachs Group reiterated a "buy" rating on shares of Cenovus Energy in a research note on Wednesday, May 13th. Weiss Ratings raised shares of Cenovus Energy from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Finally, Morgan Stanley restated an "overweight" rating on shares of Cenovus Energy in a report on Wednesday, August 19th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $39.00.

Cenovus Energy Stock Down 0.7%

NYSE:CVE traded down $0.24 on Wednesday, hitting $32.88. 2,612,545 shares of the company's stock were exchanged, compared to its average volume of 10,818,983. The firm has a 50-day moving average price of $28.68 and a 200-day moving average price of $27.06. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.63 and a quick ratio of 1.04. Cenovus Energy has a 52 week low of $15.63 and a 52 week high of $33.40. The company has a market cap of $60.82 billion, a P/E ratio of 12.66 and a beta of 0.35.

Cenovus Energy (NYSE:CVE - Get Free Report) TSE: CVE last announced its quarterly earnings data on Wednesday, July 29th. The oil and gas company reported $1.11 earnings per share for the quarter, meeting the consensus estimate of $1.11. The company had revenue of $14.59 billion during the quarter, compared to analysts' expectations of $11.87 billion. Cenovus Energy had a return on equity of 21.08% and a net margin of 12.37%.Cenovus Energy's revenue for the quarter was up 47.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.45 EPS. As a group, analysts expect that Cenovus Energy will post 3.2 EPS for the current fiscal year.

Institutional Investors Weigh In On Cenovus Energy

Hedge funds have recently added to or reduced their stakes in the business. Orion Capital Management LLC bought a new position in shares of Cenovus Energy in the second quarter valued at about $25,000. Transamerica Financial Advisors LLC boosted its holdings in shares of Cenovus Energy by 1,302.7% during the 4th quarter. Transamerica Financial Advisors LLC now owns 1,543 shares of the oil and gas company's stock worth $26,000 after buying an additional 1,433 shares during the period. Gables Capital Management Inc. bought a new stake in shares of Cenovus Energy during the 2nd quarter worth about $35,000. Kestra Advisory Services LLC acquired a new position in Cenovus Energy in the 4th quarter valued at about $38,000. Finally, Geneos Wealth Management Inc. raised its holdings in Cenovus Energy by 74.1% in the 2nd quarter. Geneos Wealth Management Inc. now owns 3,253 shares of the oil and gas company's stock valued at $44,000 after acquiring an additional 1,384 shares during the period. Institutional investors and hedge funds own 51.19% of the company's stock.

About Cenovus Energy

Cenovus Energy Inc is a Canadian integrated energy company engaged in the exploration, development and production of crude oil, natural gas liquids and natural gas, together with downstream refining and marketing activities. Headquartered in Calgary, Alberta, Cenovus operates a mix of oil sands thermal and dilbit assets, conventional oil and gas properties, and owns refining and midstream assets designed to move and process hydrocarbons into finished petroleum products for commercial markets.

The company was originally formed as a spin‑off from Encana Corporation in 2009 and has grown through organic development and strategic acquisitions.

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