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Cenovus Energy Inc. (NYSE:CVE) is included among the 12 Most Undervalued Natural Gas Stocks to Buy Now.
Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company that operates across the full oil and natural gas value chain in exploration, production, refining, transportation, and retail.
On April 9, UBS upped its price target on Cenovus Energy Inc. (NYSE:CVE) from C$36 to C$41, while maintaining a ‘Buy’ rating on the shares. The raised target reflects an upside of over 17% from the current share price.
Similarly, earlier on April 7, BMO Capital also bumped its price target on Cenovus Energy Inc. (NYSE:CVE) from $35 to $42, while keeping an ‘Outperform’ rating on the shares. The target boost comes as the analyst firm adjusted its models with the updated mark-to-market assumptions in Q1, reflecting the impact of the Middle East conflict and the ongoing oversupply issues impacting the North American natural gas market.
The oil and gas markets remain on edge, awaiting President Trump’s next move. According to the firm, an end to the US-Iran war would allow the resumption of flows through the waterway of Hormuz, bringing crude prices down to the $75-$85 per barrel trading range. On the other hand, if the current peace efforts fail and hostilities escalate, we could even see oil prices soaring to the $150-$200 per barrel levels. While the analyst firm expressed concerns over the steep economic impact of a prolonged conflict, it expressed belief that the war would wind down by the end of this month.
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