BUY @ TPH: Anticipates Higher Payouts; Price Target at C$30Cenovus Energy Maintained at Buy at TPH as It Anticipates Higher Payouts; Price Target at CAD$30
09:53 AM EDT, 06/20/2024 (MT Newswires) -- Tudor, Pickering, Holt on Thursday reiterated its buy rating on the shares of Cenovus Energy (CVE.TO, CVE) with a C$30.00 price target as it expects the oil producer and refiner to soon boost shareholder returns.
"With a solid mix of improvements to the story in sight across multiple time frames, we remain constructive on CVE. Coming up, we continue to view management's achievement of the net debt target (C$4B) as imminent (TPHe within Q3), after which the company's shareholder returns policy will inflect to 100% (from 50%) of FCF. Looking to a full year of the policy in place in FY'25, we see this resulting in a 9% total return yield, with the equity trading at 8% FCF/EV (both at strip), with valuation remaining competitive among the oil sands space. We see returns spreading across a mix of base dividend growth (based on sustainability at $45 WTI), buybacks, and variable dividend utilization," analyst Jeoffrey Lambujon noted.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
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