RBC Capital Increases Cenovus Energy (CVE) Target, Points to Strong Asset Portfolio

Vardah Gill

Tue, February 24, 2026 at 1:46 PM GMT+9 2 min read

In this article:

CVE

-0.09%

MEG.TO

Cenovus Energy Inc. (NYSE:CVE) is included among the 13 Best Strong Buy Dividend Stocks to Invest in.

RBC Capital Increases Cenovus Energy (CVE) Target, Points to Strong Asset Portfolio

On February 20, RBC Capital raised its price recommendation on Cenovus Energy Inc. (NYSE:CVE) to C$32 from C$31. It reiterated an Outperform rating on the shares. The analyst pointed to the company’s experienced leadership team, strong alignment with shareholders, consistent free cash flow generation, and a strengthened asset portfolio as key positives.

A day earlier, on February 19, Cenovus announced that it had started drilling new wells at its Christina Lake oil sands site in northern Alberta. The asset was previously owned by MEG Energy. The company said this development is expected to increase overall production both this year and in 2027. Cenovus acquired MEG Energy last year after a prolonged takeover battle with Strathcona Resources. The deal added about 100,000 barrels per day of production to Cenovus’ portfolio. This expansion further solidified the company’s position as one of the world’s largest heavy oil producers.

The impact of the acquisition is already visible in its production figures. Cenovus reported production of 917,900 barrels of oil equivalent per day in the fourth quarter, up from 816,000 boepd a year earlier. Much of this increase came from the addition of the Christina Lake site. The company believes there is still room to expand production at Christina Lake beyond previous levels. CEO Jon McKenzie said during a conference call that Cenovus has started drilling 42 new wells as part of a redevelopment plan. He explained that the company will apply its own well-designed technologies at the site, which could improve efficiency and output.

Cenovus is also working on expanding processing capacity at Christina Lake. McKenzie said the plan could increase production at the site to more than 150,000 barrels per day by 2027 or 2028. This reflects the company’s longer-term focus on growing output from its core oil sands assets.

Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company based in Canada. It produces oil and natural gas in Canada and the Asia Pacific region, and also operates upgrading, refining, and marketing businesses in Canada and the United States.

While we acknowledge the potential of CVE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Story Continues  

****READ NEXT: 13 Best NASDAQ Dividend Stocks to Buy Now ****and 14 Best Low Volatility Dividend Stocks to Invest In

Disclosure: None.

Terms and Privacy Policy

Privacy Dashboard

More Info