Monday, November 1, 2010

Cenovus'(NYSE: CVE) Downstream Will Weigh on Them Says TD Newcrest

According to TD Newcrest, the downstream of Cenovus Energy Inc (NYSE:CVE) will weigh the company down, and they downgraded them from "Buy" to "Hold" based on that assumption.

TD said, "Of note, our 2010 CFPS estimate is now marginally higher since we were already at the low-end of the new target range. Our 2011 CFPS estimate also increases marginally (drives 75% of the EV/DACF component of our target price calculation) but since we reduced our target multiple to 8.5x from 9x to reflect current peer group multiples, our target price falls to $32/share. We note that 2010 guidance had not been updated since April 2010. With a target return of 15%, we are concurrently downgrading to HOLD."

Cenvus closed Friday at $27.82. losing $0.35, or 0.89 percent. They lowered their price target from C$33 to C$32 on the company.

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