Ovintiv Inc. (OVV) Price Target - Jan 16

[dan_s]

Today I will finish updating all of the remaining Sweet 16 forecast models that still need to be adjusted for my lower natural gas prices assumption ($4.00/MMBtu average for 2023). First up is OVV and then I will update PR, ROCC and SM. The other 12 have already been updated and posted to the EPG website.

OVV closed at $50.28 on January 13th.

TipRanks: "In the last 3 months, 12 ranked analysts set 12-month price targets for OVV. The average price target among the analysts is $67.33. The 12 price targest range from $60 to $75".

On January 9th Mizuho Securities analyst Nitin Kumar assumed coverage of Ovintiv with a Buy rating with a price target of $68, up from $61. Missed earnings and raised capital guidance have led investors to question inventory depth and execution, but he believes the company is better positioned to maintain free cash flow generation in 2023 than peers. This, coupled with an increase in cash returns, could provide tailwinds to the stock, argues Kumar.

My updated current valuation is $70.

OVV pays a nice dividend and it has a well-funded stock repurchase program underway. Both are funded by annual free cash flow of more than $2 Billion.