Ovintiv (OVV) Shares Get UBS Buy Rating, Price Target Raised After NVA Acquisition

Ovintiv Inc. (NYSE:OVV) ranks among the 9 hot energy stocks to buy. On November 21, UBS boosted its price target for Ovintiv Inc. (NYSE:OVV) to $54 from $52, maintaining a Buy rating on the company’s shares. The upgrade follows Ovintiv’s acquisition of NVA and impending Anadarko disposal, which UBS says achieves three major business goals while offering a clear path for outperformance through 2026.

The acquisition is expected to add roughly 140,000 net acres and 100,000 barrels of oil equivalent per day in the heart of the oil-rich Alberta Montney, providing a strong complement to Ovintiv’s existing property.

UBS further stated that the purchase greatly improves Ovintiv’s balance sheet profile and increases its capacity for shareholder returns and resource enhancements, which the firm sees as the most significant gain.

Furthermore, UBS recognized the Anadarko acquisition as the primary catalyst for Ovintiv Inc. (NYSE:OVV), adding that its successful completion would justify a re-rating to the higher price target.

Ovintiv Inc. (NYSE:OVV) is a Denver-based energy company specializing in natural gas, oil, and natural gas liquids across the United States and Canada.

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Disclosure: None. This article is originally published at Insider Monkey.