11:57 AM EDT, 09/09/2025 (MT Newswires) -- Cenovus Energy ( CVE ) had its price target raised to $29 from $28 with an unchanged outperform rating at National Bank of Canada, the bank said Tuesday.

National Bank raised its target after Cenovus agreed to sell its 50% working interest in the Wood River-Borger refining partnership to operator Phillips 66 for about $1.9 billion.

The bank said its 2026 free cash flow estimate for Cenovus is now up 7% following the deal.

"Following several years of negative FCF out of the US downstream, we view this move as a positive one, allowing the company to focus on its core operated upstream and downstream business, while accelerating debt repayment," the bank said.

Cenovus plans to use the proceeds to reduce debt, positioning it to reach its first net debt target of $6 billion in late 2026 or early 2027, the bank said, adding that further divestitures could include offshore Canada and the conventional business.

Cenovus shares were last seen up 3.4% at $22.86 on the Toronto Stock Exchange.

Price: 22.74, Change: +0.62, Percent Change: +2.80