10:55 AM EST, 03/06/2024 (MT Newswires) -- RBC Capital Markets said Tuesday that Cenovus Energy Inc. ( CVE ) refined its five-year game plan during its 2024 investor open house in Toronto.

RBC said Cenovus's strategy included upstream growth, balance sheet deleveraging and rising shareholder returns.

"The menu looks good in our eyes with delivery of the plan moving into sharp focus," RBC said.

RBC noted that the company is approaching its $4 billion net debt floor, which it expects to achieve sometime in 2024.

RBC added that 2026 is a year of inflection for Cenovus as its capital investment drops from $4.5 billion to $5.0 billion in 2025 to a range of $3.5 billion to $4.0 billion in the 2026-2028.

RBC gave Cenovus an outperform rating with a $28.00 price target.

Meanwhile, National Bank of Canada said its five-year forecast for Cenovus remained in line with the company's five-year plan, including $32 billion in cumulative free cash flow.

The bank said that while the absolute value of Cenovus' oil sands business is disproportionate compared to the downstream segment, the company's corporate valuation will remain at a discount to its peers if throughput and margin volatility persist.

The bank reiterated Cenovus's outperform rating and $29.00 price target.

Price: 24.03, Change: +0.18, Percent Change: +0.75