Cenovus Energy (CVE) Downgraded by Veritas Days after Bullish Call from BMO

Cenovus Energy Inc. (NYSE:CVE) is included among the 13 Best March Dividend Stocks to Buy.

On February 24, Veritas downgraded Cenovus Energy Inc. (NYSE:CVE) to Sell from Reduce. The firm set a price target of C$27. Just a few days earlier, on February 20, BMO Capital analyst Randy Ollenberger raised his price recommendation on the stock to C$35 from C$29. The analyst kept an Outperform rating. The mixed analyst views reflect different expectations around the company’s outlook and valuation.

On February 19, Cenovus said it had begun drilling new wells at its Christina Lake oil sands site in northern Alberta. This asset was previously owned by MEG Energy. The company expects the new drilling activity to lift production this year and again in 2027. Cenovus acquired MEG Energy last year after a lengthy takeover battle with Strathcona Resources. The acquisition added about 100,000 barrels per day to Cenovus’ production base. This move strengthened its position as one of the largest heavy oil producers globally.

The impact is already showing in the numbers. Cenovus reported production of 917,900 barrels of oil equivalent per day in the fourth quarter, up from 816,000 boepd a year earlier. Much of that increase came from Christina Lake.CEO Jon McKenzie said during a conference call that the company has started drilling 42 new wells as part of a redevelopment plan. He explained that Cenovus plans to use its own well designs and technology at the site. The goal is to improve efficiency and increase output over time.

The company is also working to expand processing capacity at Christina Lake. McKenzie said this effort could raise production at the site to more than 150,000 barrels per day by 2027 or 2028. This reflects Cenovus’ longer-term strategy of growing production from its core oil sands assets.

Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company based in Canada. It produces oil and natural gas in Canada and the Asia Pacific region. The company also operates upgrading, refining, and marketing businesses in Canada and the United States.

While we acknowledge the potential of CVE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 14 Value Stocks to Buy With High Dividend Yields and 13 Best Long-Term Dividend Stocks to Invest in Right Now

Disclosure: None.  Follow Insider Monkey on Google News.