12:10 AM EST, 11/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price of $35 (cut by $2), reflects a combination of our relative value and DCF models. On a relative basis, we apply a 3.9x multiple of enterprise value to projected 2026 EBITDA, in line with OVV's historical forward average, and yielding a value of $39 per share. Our DCF model, using free cash flow growth of 7.1% per year, 2% terminal growth, and a WACC of 6.8%, yields an intrinsic value of $31. We cut our 2025 EPS estimate by $0.31 to $4.51 and our 2026 estimate by $0.51 to $4.99. OVV is somewhat in the midst of a transformation, focusing on growth in the Permian Basin (which accounted for 33% of Q3 production) but facing price headwinds in the Montney for its natural gas plays (which comprised 50% of Q3 production). There are likely some longer-term green shoots for natural gas prices in Western Canada as LNG Canada ramps up, but we do not expect a significant impact through 2026. Shares yield 3.2%, and the 2026 payout ratio looks manageable.