Citi Upgrades Ovintiv and CRC to Buy with Price Targets of $70 and $78
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2026
0mins
Source: seekingalpha
- Rating Upgrade: Citi has upgraded Ovintiv (OVV) and California Resources (CRC) from Neutral to Buy, with price targets set at $70 and $78 respectively, indicating a rising relative value appeal in the exploration and production sector.
- Financial Improvement: Analyst Scott Gruber notes that Ovintiv's acquisition of Montney peer Arc Resources should enhance its visibility in the play, while anticipated fund flows may offset AECO pricing pressures, further improving the company's financial health.
- Production Outlook: Ovintiv's well productivity in Midland continues to show impressive improvement, which is expected to de-risk the volume outlook going forward and potentially set the stage for a type-curve uplift into 2027, with a forecasted net debt of approximately $2 billion by then.
- Market Opportunity: Despite a pullback in California Resources' shares following earnings, Gruber sees this as an opportunity, as the core oil and gas business value has materially improved due to higher medium-term oil prices and a more favorable permitting environment in California.
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Analyst Views on OVV
Wall Street analysts forecast OVV stock price to fall
17 Analyst Rating
13 Buy
4 Hold
0 Sell
Strong Buy
Current: 55.810
Low
42.00
Averages
51.00
High
56.00
Current: 55.810
Low
42.00
Averages
51.00
High
56.00
About OVV
Ovintiv Inc. is an oil and natural gas exploration and production company. The Company is focused on developing a multi-basin portfolio of assets located in the United States and Canada. Its operations include marketing of oil, natural gas liquids and natural gas. Its assets include Permian Basin and Montney. The Permian Basin is an oil play, located in oil deposits in the United States, located in west Texas primarily in Midland, Martin, Andrews, Howard, Glasscock, Ector and Upton counties. The Company develops the play using its cube development model and multi-frac techniques. The Montney is a liquids and natural gas play located in northwest Alberta and northeast British Columbia. The play includes properties that are in the Montney formation, which is an oil and gas deposit in North America. The formation is characterized by up to six stacked horizons spanning over 1,000 feet of stratigraphy and is being developed through horizontal drilling and completion operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Citi Upgrades Ovintiv and CRC to Buy with Price Targets of $70 and $78
- Rating Upgrade: Citi has upgraded Ovintiv (OVV) and California Resources (CRC) from Neutral to Buy, with price targets set at $70 and $78 respectively, indicating a rising relative value appeal in the exploration and production sector.
- Financial Improvement: Analyst Scott Gruber notes that Ovintiv's acquisition of Montney peer Arc Resources should enhance its visibility in the play, while anticipated fund flows may offset AECO pricing pressures, further improving the company's financial health.
- Production Outlook: Ovintiv's well productivity in Midland continues to show impressive improvement, which is expected to de-risk the volume outlook going forward and potentially set the stage for a type-curve uplift into 2027, with a forecasted net debt of approximately $2 billion by then.
- Market Opportunity: Despite a pullback in California Resources' shares following earnings, Gruber sees this as an opportunity, as the core oil and gas business value has materially improved due to higher medium-term oil prices and a more favorable permitting environment in California.
See More
Latest Wall Street Rating Updates
- Goldman Sachs Reiterates Buy on Broadcom: Goldman raised Broadcom's price target from $480 to $500, anticipating strong CapEx spending patterns from key customers, indicating that the upcoming earnings report may exceed market expectations.
- Oppenheimer Upgrades Rubrik: Oppenheimer upgraded Rubrik from Perform to Outperform with a price target of $85, based on strong checks from value-added resellers, highlighting the product's competitive strength in the market.
- UBS Upgrades Packaging Corp: UBS upgraded Packaging Corp from Neutral to Buy, expecting the $50/ton price hike to stick, which, combined with high utilization and prior capacity cuts, could add approximately $290 million in annualized EBITDA.
- Deutsche Bank Upgrades Humana: Deutsche Bank believes there is still time to buy shares of Humana, upgrading its rating to Buy, as it anticipates a new rally in managed care organizations that is just beginning.
See More
Market Dynamics and Earnings Preview Ahead
- Market Outlook: U.S. stock futures rise ahead of Nvidia's earnings report, breaking a three-day losing streak for the S&P 500, as President Trump hints at a quick end to the Iran war, leading to slight declines in oil prices and interest rates, which boosts market sentiment.
- Nvidia Earnings Anticipation: Nvidia is set to release its earnings tonight, with market expectations for a beat to drive a post-earnings rally; however, skepticism remains regarding its ability to maintain market share amidst competition from Amazon and Google’s in-house chips.
- Target's Performance Rebound: Under new CEO leadership, Target reported a quarterly earnings beat with same-store sales up 5.6%, significantly surpassing the 2.4% consensus, and raised its full-year net sales growth forecast to 4%, indicating strong growth in fashion and health products.
- UnitedHealth Stock Recovery: UnitedHealth has shown strong performance since CEO Steve Hemsley's return, with Mizuho raising its price target from $410 to $440, reflecting a 20% stock price increase over the past month, indicating market confidence in its growth trajectory.
See More
Ovintiv Q1 2026 Earnings Call Insights
- Financial Performance: Ovintiv reported a free cash flow of $634 million in Q1, with cash flow per share at $4.62, indicating strong financial performance post-NuVista asset integration, despite a $1.2 billion after-tax noncash impairment loss.
- Debt Management: As of April 30, the company's net debt was reduced to $3.3 billion with a leverage ratio below 0.8x, and it expects to realize over $80 million in annual interest savings from debt repayments, enhancing financial stability.
- Production Targets: The company achieved its target of 85,000 barrels per day in the first month post-acquisition and realized $1 million in per well savings, anticipating $100 million in annual cost synergies, which boosts operational efficiency.
- Future Outlook: Management maintains its full-year production guidance of 205,000 to 212,000 barrels per day with capital spending expected around $575 million, demonstrating a stable capital allocation strategy amid rising oil prices.
See More
Ovintiv Declares Quarterly Dividend of $0.30 per Share
- Quarterly Dividend Declaration: Ovintiv has declared a quarterly dividend of $0.30 per share, consistent with previous distributions, indicating the company's stability and commitment to shareholder returns in the current market environment.
- Dividend Yield: The forward yield of 2.03% offers investors a relatively attractive return, reflecting effective cash flow management and the company's ability to sustain dividends amidst market fluctuations.
- Shareholder Record Dates: The dividend is payable on June 30, with a record date of June 15 and an ex-dividend date also set for June 15, ensuring that shareholders can receive their earnings promptly.
- Market Comparison Analysis: A comparative analysis between Ovintiv and Paramount Resources suggests that now is an opportune time to invest in Ovintiv, potentially offering investors higher return prospects compared to its competitor.
See More
Ovintiv Reports Strong Q1 2026 Financial Results and Guidance
- Strong Financial Performance: Ovintiv reported a non-GAAP free cash flow of $634 million in Q1 2026, reflecting a 63% increase from the same period in 2025, showcasing the company's excellence in capital allocation and operational efficiency, thereby solidifying its competitive position in the oil and gas sector.
- Increased Shareholder Returns: The total shareholder returns for the first quarter amounted to approximately $169 million, including about $84 million in share buybacks and $85 million in base dividend payments, demonstrating the company's ongoing commitment to shareholder value while providing funding for future investments.
- Robust Production Guidance: Ovintiv expects its full-year production volumes for 2026 to average between 620 and 645 MBOE/d, with planned capital investments of $2.25 billion to $2.35 billion, indicating the company's confidence in future growth and proactive response to market demand.
- Strong Balance Sheet: As of March 31, 2026, Ovintiv's net debt was reduced to approximately $3.3 billion, with a net debt to adjusted EBITDA ratio of less than 0.8 times, reflecting the company's financial prudence and maintaining an investment-grade credit rating.
See More
Citi Upgrades Ovintiv and CRC to Buy with Price Targets of $70 and $78
- Rating Upgrade: Citi has upgraded Ovintiv (OVV) and California Resources (CRC) from Neutral to Buy, with price targets set at $70 and $78 respectively, indicating a rising relative value appeal in the exploration and production sector.
- Financial Improvement: Analyst Scott Gruber notes that Ovintiv's acquisition of Montney peer Arc Resources should enhance its visibility in the play, while anticipated fund flows may offset AECO pricing pressures, further improving the company's financial health.
- Production Outlook: Ovintiv's well productivity in Midland continues to show impressive improvement, which is expected to de-risk the volume outlook going forward and potentially set the stage for a type-curve uplift into 2027, with a forecasted net debt of approximately $2 billion by then.
- Market Opportunity: Despite a pullback in California Resources' shares following earnings, Gruber sees this as an opportunity, as the core oil and gas business value has materially improved due to higher medium-term oil prices and a more favorable permitting environment in California.
See More
Latest Wall Street Rating Updates
- Goldman Sachs Reiterates Buy on Broadcom: Goldman raised Broadcom's price target from $480 to $500, anticipating strong CapEx spending patterns from key customers, indicating that the upcoming earnings report may exceed market expectations.
- Oppenheimer Upgrades Rubrik: Oppenheimer upgraded Rubrik from Perform to Outperform with a price target of $85, based on strong checks from value-added resellers, highlighting the product's competitive strength in the market.
- UBS Upgrades Packaging Corp: UBS upgraded Packaging Corp from Neutral to Buy, expecting the $50/ton price hike to stick, which, combined with high utilization and prior capacity cuts, could add approximately $290 million in annualized EBITDA.
- Deutsche Bank Upgrades Humana: Deutsche Bank believes there is still time to buy shares of Humana, upgrading its rating to Buy, as it anticipates a new rally in managed care organizations that is just beginning.
See More
Market Dynamics and Earnings Preview Ahead
- Market Outlook: U.S. stock futures rise ahead of Nvidia's earnings report, breaking a three-day losing streak for the S&P 500, as President Trump hints at a quick end to the Iran war, leading to slight declines in oil prices and interest rates, which boosts market sentiment.
- Nvidia Earnings Anticipation: Nvidia is set to release its earnings tonight, with market expectations for a beat to drive a post-earnings rally; however, skepticism remains regarding its ability to maintain market share amidst competition from Amazon and Google’s in-house chips.
- Target's Performance Rebound: Under new CEO leadership, Target reported a quarterly earnings beat with same-store sales up 5.6%, significantly surpassing the 2.4% consensus, and raised its full-year net sales growth forecast to 4%, indicating strong growth in fashion and health products.
- UnitedHealth Stock Recovery: UnitedHealth has shown strong performance since CEO Steve Hemsley's return, with Mizuho raising its price target from $410 to $440, reflecting a 20% stock price increase over the past month, indicating market confidence in its growth trajectory.
See More
Ovintiv Q1 2026 Earnings Call Insights
- Financial Performance: Ovintiv reported a free cash flow of $634 million in Q1, with cash flow per share at $4.62, indicating strong financial performance post-NuVista asset integration, despite a $1.2 billion after-tax noncash impairment loss.
- Debt Management: As of April 30, the company's net debt was reduced to $3.3 billion with a leverage ratio below 0.8x, and it expects to realize over $80 million in annual interest savings from debt repayments, enhancing financial stability.
- Production Targets: The company achieved its target of 85,000 barrels per day in the first month post-acquisition and realized $1 million in per well savings, anticipating $100 million in annual cost synergies, which boosts operational efficiency.
- Future Outlook: Management maintains its full-year production guidance of 205,000 to 212,000 barrels per day with capital spending expected around $575 million, demonstrating a stable capital allocation strategy amid rising oil prices.
See More
Ovintiv Declares Quarterly Dividend of $0.30 per Share
- Quarterly Dividend Declaration: Ovintiv has declared a quarterly dividend of $0.30 per share, consistent with previous distributions, indicating the company's stability and commitment to shareholder returns in the current market environment.
- Dividend Yield: The forward yield of 2.03% offers investors a relatively attractive return, reflecting effective cash flow management and the company's ability to sustain dividends amidst market fluctuations.
- Shareholder Record Dates: The dividend is payable on June 30, with a record date of June 15 and an ex-dividend date also set for June 15, ensuring that shareholders can receive their earnings promptly.
- Market Comparison Analysis: A comparative analysis between Ovintiv and Paramount Resources suggests that now is an opportune time to invest in Ovintiv, potentially offering investors higher return prospects compared to its competitor.
See More
Ovintiv Reports Strong Q1 2026 Financial Results and Guidance
- Strong Financial Performance: Ovintiv reported a non-GAAP free cash flow of $634 million in Q1 2026, reflecting a 63% increase from the same period in 2025, showcasing the company's excellence in capital allocation and operational efficiency, thereby solidifying its competitive position in the oil and gas sector.
- Increased Shareholder Returns: The total shareholder returns for the first quarter amounted to approximately $169 million, including about $84 million in share buybacks and $85 million in base dividend payments, demonstrating the company's ongoing commitment to shareholder value while providing funding for future investments.
- Robust Production Guidance: Ovintiv expects its full-year production volumes for 2026 to average between 620 and 645 MBOE/d, with planned capital investments of $2.25 billion to $2.35 billion, indicating the company's confidence in future growth and proactive response to market demand.
- Strong Balance Sheet: As of March 31, 2026, Ovintiv's net debt was reduced to approximately $3.3 billion, with a net debt to adjusted EBITDA ratio of less than 0.8 times, reflecting the company's financial prudence and maintaining an investment-grade credit rating.
See More
