UBS Keeps Ovintiv (OVV) as Top E&P Pick, Raises Price Target to $58

Rizwan Siddiqui

Tue, February 24, 2026 at 3:25 PM GMT+9 2 min read

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Ovintiv Inc. (NYSE:OVV) is among the 15 Undervalued Momentum Stocks That Are Taking Off.

On February 18, UBS reiterated Ovintiv Inc. (NYSE:OVV) as its top Oil E&P pick following the announcement of the $3 billion Anadarko Basin divestiture. The firm also raised its price target on the stock from $55 to $58 and reaffirmed a Buy rating.

The analyst noted that the combined impact of the NuVista deal and the Anadarko sale helps the company address investor concerns about crude and condensate inventory and leverage. Despite these structural improvements, Ovintiv continues to trade at one of the lowest valuation multiples within the E&P peer group. UBS argues that, in view of these changes, the current discount would be increasingly difficult to justify. Thus, the analyst appears to suggest scope for multiple expansion.

A day earlier, Ovintiv Inc. (NYSE:OVV) announced an agreement to sell its Anadarko assets in Oklahoma for $3.0 billion in cash to a buyer whose identity has not been disclosed. The divestiture includes roughly 360,000 net acres, representing substantially all of Ovintiv’s acreage in the play. The transaction is expected to close in early Q2 2026.

UBS Keeps Ovintiv (OVV) as Top E&P Pick, Raises Price Target to $58

On the announcement, Brendan McCracken, Ovintiv President and CEO, stated:

”This transaction marks a significant milestone by focusing our portfolio, delivering on our debt target, and unlocking increased returns to our shareholders.” He further added, “We have built one of the deepest premium inventory positions in our industry in the two most valuable plays in North America, the Permian and the Montney. This positions us to deliver superior returns for our shareholders for many years to come.”

Management also plans to provide updated 2026 guidance and a revised shareholder return framework alongside Q4 and full-year 2025 results on February 23, 2026.

Ovintiv Inc. (NYSE:OVV) is a leading North American energy producer focused on developing its multi-basin portfolio of oil, natural gas liquids, and natural gas producing plays.

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READ NEXT:  12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.

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