UBS Keeps Ovintiv (OVV) as Top E&P Pick, Raises Price Target to $58

Ovintiv Inc. (NYSE:OVV) is among the 15 Undervalued Momentum Stocks That Are Taking Off.

On February 18, UBS reiterated Ovintiv Inc. (NYSE:OVV) arsenic its apical Oil E&P prime pursuing the announcement of the $3 cardinal Anadarko Basin divestiture. The steadfast besides raised its terms people connected the banal from $55 to $58 and reaffirmed a Buy rating.

The expert noted that the combined interaction of the NuVista woody and the Anadarko merchantability helps the institution code capitalist concerns astir crude and condensate inventory and leverage. Despite these structural improvements, Ovintiv continues to commercialized astatine 1 of the lowest valuation multiples wrong the E&P adjacent group. UBS argues that, successful presumption of these changes, the existent discount would beryllium progressively hard to justify. Thus, the expert appears to suggest scope for aggregate expansion.

A time earlier, Ovintiv Inc. (NYSE:OVV) announced an statement to merchantability its Anadarko assets successful Oklahoma for $3.0 cardinal successful currency to a purchaser whose individuality has not been disclosed. The divestiture includes astir 360,000 nett acres, representing substantially each of Ovintiv’s acreage successful the play. The transaction is expected to adjacent successful aboriginal Q2 2026.

On the announcement, Brendan McCracken, Ovintiv President and CEO, stated:

”This transaction marks a important milestone by focusing our portfolio, delivering connected our indebtedness target, and unlocking accrued returns to our shareholders.” He further added, “We person built 1 of the deepest premium inventory positions successful our manufacture successful the 2 astir invaluable plays successful North America, the Permian and the Montney. This positions america to present superior returns for our shareholders for galore years to come.”

Management besides plans to supply updated 2026 guidance and a revised shareholder instrumentality model alongside Q4 and full-year 2025 results connected February 23, 2026.

Ovintiv Inc. (NYSE:OVV) is simply a starring North American vigor shaper focused connected processing its multi-basin portfolio of oil, earthy state liquids, and earthy state producing plays.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.