Morgan Stanley has revised its price target for Cenovus Energy (CVE, Financial), adjusting it from C$30 down to C$26. Despite this reduction, the firm maintains an Overweight rating for the company's shares. This adjustment comes as part of a broader update on North American energy stocks, prompted by recent declines in oil prices.
The analysis indicates that cash flow projections for 2025 and 2026 have been adjusted downward, now sitting below market consensus estimates. The uncertainties in the market have led Morgan Stanley to apply a larger discount to net asset value multiples, particularly affecting small and mid-cap producers and those with greater execution uncertainties.
Additionally, given current oil market fundamentals, Morgan Stanley's view on the exploration and production sector remains In-Line, indicating neither a particularly strong nor weak outlook for the near to medium term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Cenovus Energy Inc (CVE, Financial) is $19.10 with a high estimate of $23.06 and a low estimate of $16.22. The average target implies an upside of 64.74% from the current price of $11.60. More detailed estimate data can be found on the Cenovus Energy Inc (CVE) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Cenovus Energy Inc's (CVE, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cenovus Energy Inc (CVE, Financial) in one year is $15.20, suggesting a upside of 31.09% from the current price of $11.595. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cenovus Energy Inc (CVE) Summary page.
