This summary was created by AI, based on 31 opinions in the last 12 months.
Cenovus Energy (CVE-T) is viewed as a reasonably good choice in the energy sector with a focus on low-cost, long-life production and a strong management team. The company has struggled with debt reduction and refining margins, but has shown strong growth and performance. Experts expect the stock to see continued growth and to eventually offer a significant return of capital to shareholders.
Editor's Note - This past pick was not the common stock but the corporate bond. The total return is a bit mis-leading due to the nature of bonds, and is actually higher than shown. In general, corporate bond spreads are very tight now due to the fact that there is no supply and too much demand. There is not as much corporate debt out there.
With energy companies, you really have to be comfortable with commodity price and OPEC manipulation. Oil prices seem to have settled, nat gas prices soft. Compared to peers, it's cheaper, better production growth and cashflow growth. Pretty good deal here. Slower debt reduction is not of much concern with current oil price.
Treated poorly in the market, but company has excellent management team. High quality assets. Ability to buy assets in the market. Quality of upstream and downstream assets good.
Excellent company that is top holding in portfolio. Excellent management team with executing. Believes stock buybacks will commence within next month or two. Between 75%-100% free cash flow will be dedicated to return of capital. Excellent assets in oil sands and refineries. Will continue to hold and buy more.
We do not think Trans Mountain will influence values much. Prices, with global influences, will continue to have a bigger impact. The stock is cheap at 8X earnings and offers a decent, growing dividend. It is one of the few in the sector expected to see per-share growth in '24, in the 20% or so range. Debt is down to 1X cash flow and the share count continues to decline. 3Q results were strong, with good growth and lower debt, though refining margins remain a possible negative variable. Overall, though, it looks fine to us.
Unlock Premium - Try 5i Free
For Baytex there is some consolidation here due to some nervousness re the price of oil. Cenovus is similar to Baytex and has dropped to the consolidation level. It could go to the $20 level in the next 3 to 6 months. Don't buy energy now since it could retrace much of its big gains.
Debt drawdown taking longer than thought due to weaker oil. Other issues have been fixed. Waiting to hit $4B of debt, and he sees it happening in Q2. Shareholders should be getting 100% of free cashflow early next year. Sees 40-80% upside. 35 years of inventory. Solid, steady CEO. High-quality reservoirs. Yield is 2.34%.
(Analysts’ price target is $33.19)Likes it though prefers Baytex for its free cash flow. Cenovus has some downstream issues and balance sheet issues. Has done well this year, though.
Likes the energy space. Good company, though he prefers other names. Higher oil prices will increase cashflows. Returning more money to shareholders. Oil companies will be profit and cash machines if oil stays in $80 range.
One of the better Canadian oil/gas names. Likes their assets. Higher oil prices have raised the share price. Lots of free cash flow created that has reduced debt, so now a strong balance sheet. Shares are near all-time highs, so wait for a pullback.
Management team assuring production/refinery issues not a concern. Expecting company to hit $4 billion debt target in January 2024. At least 30 years of long dated inventory. Not expecting M&A anytime soon. Trading around ~4x free cash flow at $80 oil. Expecting ~$38 share price at $80 oil. Will continue to own shares at 11% of fund.
Egress on heavy oil in Canada a concern. Recent EIA reports on Gasoline demand lower. Would hold at this time. Expecting lower oil prices. Does not own shares.
Cenovus Energy is a Canadian stock, trading under the symbol CVE-T on the Toronto Stock Exchange (CVE-CT). It is usually referred to as TSX:CVE or CVE-T
In the last year, 22 stock analysts published opinions about CVE-T. 16 analysts recommended to BUY the stock. 4 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Cenovus Energy.
Cenovus Energy was recommended as a Top Pick by on . Read the latest stock experts ratings for Cenovus Energy.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
22 stock analysts on Stockchase covered Cenovus Energy In the last year. It is a trending stock that is worth watching.
On 2024-03-28, Cenovus Energy (CVE-T) stock closed at a price of $27.08.
That's a pretty short timeframe, so where it goes could be largely determined by commodity price. Longer term, low-cost, long-life production base to draw on. In production growth phase, tailing off in 4 years. Reasonable choice.