We Are Increasing Ovintiv’s Fair Value Estimate but Stock Remains in 3-Star Territory

After incorporating Ovintiv’s third-quarter results into our models, we are increasing our fair value estimate to $16 (CAD 20) driven by our increased forecast for price realizations on the company’s gas and oil production. Despite the increased fair value estimate, we still suggest that investors remain on the sidelines and look elsewhere for investment opportunities as Ovintiv's extreme uncertainty limits its upside. Furthermore, we are maintaining our no-moat rating.