Mizuho Securities analyst Nitin Kumar CFA has maintained their bullish stance on OVV stock, giving a Buy rating on February 28.
Nitin Kumar CFA has given his Buy rating due to a combination of factors that highlight Ovintiv’s potential for growth and financial stability. The company reported a solid performance in the fourth quarter, with oil and condensate volumes exceeding expectations, which alleviated concerns about well productivity in the Midland basin. Despite a modest decline in first-quarter volumes due to deal timing and winter weather, the overall guidance for 2025 remains strong, with management expecting growth in oil volumes throughout the year.
Additionally, Ovintiv’s leverage to natural gas prices presents a significant opportunity, as higher gas prices could substantially boost free cash flow. The company is also on track to reduce its debt, which positions it well to restart its share buyback program in the second quarter of 2025. Furthermore, Ovintiv’s valuation appears attractive compared to its peers, trading at a lower EV/EBITDX multiple, which supports the Buy rating and the $60 price target.
Kumar CFA covers the Energy sector, focusing on stocks such as Exxon Mobil, Diamondback, and Coterra Energy. According to TipRanks, Kumar CFA has an average return of 11.7% and a 60.56% success rate on recommended stocks.
In another report released on February 28, Barclays also maintained a Buy rating on the stock with a $59.00 price target.