Ovintinv’s Liquidity Looks Solid

After taking a fresh look at no-moat Ovintiv’s first-quarter results, we are increasing our fair value estimate to $7 (CAD 10) from $6 (CAD 8) as we expect higher long-term netbacks on the company’s production. Despite the increased fair value, we still suggest that investors remain on the sidelines and look elsewhere for investment opportunities. Furthermore, we are maintaining our no-moat rating.