CVE’s cost structure continued to decline in 2Q16, even prior to ramp-up of two large projects in 2H16e. Our go-forward CFPS estimates are modestly improved as is our RENAV. Target price increased $0.50 to $18.50/share. The stock looks inexpensive relative to our longer term views, but expensive at US$60/bbl WTI. CVE’s core assets are currently generating low margins (bitumen, mid-west U.S. refining).
04 Aug 2016
2Q16 Update
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2Q16 Update
Cenovus Energy Inc. (CVE:TSE) | 0 0 (-5.3%) | Mkt Cap: 11,501m
- Published:
04 Aug 2016 -
Author:
Michael P. Dunn -
Pages:
11
CVE’s cost structure continued to decline in 2Q16, even prior to ramp-up of two large projects in 2H16e. Our go-forward CFPS estimates are modestly improved as is our RENAV. Target price increased $0.50 to $18.50/share. The stock looks inexpensive relative to our longer term views, but expensive at US$60/bbl WTI. CVE’s core assets are currently generating low margins (bitumen, mid-west U.S. refining).