Ovintiv Stock Rises After BMO Upgrades On Discounted Valuation, Retail On The Fence
The brokerage noted that Ovintiv's portfolio is more focused now than at “any time in its history,” pointing to its core positions in the Midland and Montney Basins.
FollowOvintiv (OVV) stock rose 3.7% on Monday after BMO upgraded the stock to ‘Outperform’ from ‘Market Perform’ due to a valuation discount.
According to TheFly, the brokerage also raised the price target to $57 from $55. The new PT implies a 37.5% upside to the stock’s Friday closing price.
The brokerage noted that Ovintiv's portfolio is more focused now than at “any time in its history,” pointing to its core positions in the Midland and Montney Basins.
BMO analysts said that both assets generate attractive returns and the company's operational performance has been strong.
The brokerage also noted that Ovintiv is focused on continued deleveraging, supporting a resumption of buybacks in the second quarter.
According to FinChat data, 13 brokerages rate the stock as ‘Buy,’ six rate it ‘Outperform,’ and five rate it ‘Hold.’ The stock has a consensus price target of $57.28.
Retail sentiment on Stocktwits still moved to ‘neutral’ (50/100) territory from ‘bullish’(65/100) a day ago, while retail chatter was ‘extremely low.’
OVV’s Sentiment Meter and Message Volume as of 02:49 a.m. ET on March 25, 2025 | Source: Stocktwits
One retail user said the company's production is “looking solid” amid efficiency gains in the Permian Basin.
Last year, the company bolstered its footprint in the Montney shale through a $2.38 billion deal for Paramount Resources' oil assets. The deal effectively helped double Ovintiv’s production from the shale basin in Canada.
Earlier this year, Ovintiv forecasted 2025 production to be between 595,000 and 615,000 barrels of oil equivalent per day.
Ovintiv shares have gained 6.2% year-to-date (YTD).
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