08:46 AM EDT, 08/25/2025 (MT Newswires) -- Analysts at ATB Capital Markets and Desjardins raised their price targets on Cenovus Energy Inc. ( CVE ) to $28 from $25, and to $29 from $27.50, respectively.

ATB analyst Patrick J. O'Rourke maintained an Outperformer rating on shares of the Calgary-based integrated oil and gas company following its August 22 announcement that it has agreed to acquire MEG Energy Corp. ( MEGEF ) for approximately $7.9 Billion.

"The strategic rationale is underpinned by a logical asset fit, consolidating adjacent and highly complementary assets at Christina Lake, with CVE identified ~$150 Million in immediate annual synergies and an additional ~$280 Million in long-term optimizations achievable by 2028; we see the deal as 6.7% accretive to 2026 CFPS, but now resets the 100% FCF payout threshold in our model to 2028, absent any material dispositions," O'Rourke said in a note to clients.

Desjardins analyst Chris MacCulloch maintained a Buy rating on Cenovus and reiterated the stock as a top pick.

"While the transaction would be modestly dilutive, reflecting CVE's depressed valuation, we view the consolidation of Christina Lake as a strategic masterstroke," MacCulloch said in a note to clients.

"With harmonized control of the top thermal oil sands asset, we believe the company is well-positioned to surpass the ~$400 Million of identified synergies while delivering top-decile capital efficiencies," the analyst said.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)