CIBC has revised its price target for Cenovus Energy (CVE, Financial) from C$32 to C$28 while maintaining an Outperformer rating. This adjustment follows the unexpected move by OPEC+ to fast-track the end of its voluntarily reduced production levels, a decision that caught markets off-guard and led to a notable decline in oil prices.
The analyst, Dennis Fong, highlighted that this change in OPEC+ policy has disrupted the anticipated balance between oil supply and demand. Consequently, CIBC has lowered its oil price expectations as part of an upcoming Q1 earnings outlook for the energy sector
Investors are advised that this reevaluation reflects the broader market dynamics affecting oil prices and Cenovus Energy's positioning within this evolving landscape.
