TSE:CVE
Cenovus Energy (CVE.TO)
Financials 
Technical Analysis 
Underperformed on issues with US refinery, indicates on track to get back online. New CEO bought $1M worth of stock. 30 years of inventory in heavy oil. Huge leverage to oil price. Once debt reaches a certain level, investors will reap all the free cashflow. Its 6x multiple is fair value. Yield is 2.57%.
(Analysts’ price target is $29.78)
Eric Nuttall
Trouble in last couple quarters. Oil prices will hang in. Nice cashflow. Over 2-4 years, you'll do OK. He owns CNQ.
Jamie Murray Missed on Q1 cashflow and production, disappointing. Q4 missed also. Indigestion of fully integrating Husky. Looking for improvement in deliverability and consistency. Looking for a good entry point as it waits out in the penalty box.
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Premium contentCVE is one of Canada's largest integrated energy companies. Its stock price has been hampered lately due to delays in re-starting its two US refineries. However, the company is generating great cash flow allowing for an aggressively retirement of debt and share buyback. It trades at 8x earnings, under 2x book and supports a 25% ROE. We recommend placing a stop-loss at $20, looking to achieve $31 -- upside potential of 29%. Yield 1.9%
(Analysts’ price target is $31.43)
Recent CEO retirement not a concern.
Is a top pick and is buying more shares.
Recent selloff unclear as to the reason.
30+ years of reserves.
$70 oil equates to 3.4x cash flow per share.
Pledged to return 100% of free cash flow later this year.
Expecting a $38 share price this year.
Eric NuttallPremium contentOur PAST TOP PICK with CVE has triggered its stop at $23. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 9%, when combined with our previous buy recommendation.
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With wildfire related production cuts ending, we again reiterate CVE as a TOP PICK. Rainbow Lake production of 20,000 barrels per day is coming back online. The company trades at 9x earnings, 1.6x book value and supports a 20% ROE. Cash reserves are growing, allowing for an aggressive retirement of debt and the buying back of shares. We continue to recommend a stop-loss at $20, looking to achieve $29 – upside potential over 25%. Yield 2.3%
(Analysts’ price target is $29.66)