Truist Securities analysts maintained their Buy rating and a $47 price target for Ovintiv (NYSE:OVV), citing steady production and strong free cash flow generation. The analysts expect Ovintiv’s third-quarter performance to align with company expectations, driven by stable production levels and ongoing operational efficiencies.
The analysts highlighted a significant reduction in capital spending during Q3 2024, which is expected to continue in the coming quarters. This lower spending, combined with stable output, led to an estimated $400 million in free cash flow for the quarter, with about 70% returned to shareholders and the remainder allocated for debt reduction.