2023-07-31 23:00:40
The second half of the year will be a turning point for Cenovus Energy, according to the BMO analyst. (The Canadian Press)
What to do with Cenovus Energy, Imperial Oil and Celestica stocks? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that expressed.
Cenovus Energy Inc (CVE, 24,99 $) : The second half of the year will be a turning point for the company, according to the BMO analyst.
The Calgary oil company disclosed its second quarter results last week, which were on the whole in line with expectations, although it had to deal with some weakness in its downstream segment, notes Randy Ollenberger, analyst at BMO Capital Markets.
The Toledo refinery is now back to full capacity and work on its catalytic cracker at the Superior refinery should be finalized shortly. This suggests that the second half of 2023 should be a turning point for the company following a tumultuous first quarter, said the analyst.
He also estimates that the firm will reach its final net debt goal by mid-2024, allowing it to return 100% of its free cash flow to its shareholders.
Despite its recent struggles in the refining sector, as well as delays in meeting its net debt target, the analyst continues to see good value in Cenovus shares given its excellent oil sands portfolio. Anticipating that all downline issues will soon be a thing of the past, he expects a much stronger second half than the first.
The firm generated cash flow of $0.98 per share in the second quarter, as estimated by the BMO analyst. The same goes for earnings per share which reached $0.44 whereas the analyst’s forecast was $0.45.
Randy Ollenberger’s recommendation is outperform, and his target price is $27.00
Imperial Oil Limited (IMO, 71,73 $): The announcement of the results of the 2nd quarter makes the stock jump by almost 5%
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