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Evercore ISI changed its recommendations on both oil and gas producers, raising Ovintiv (OVV) from Outperform to Outperform with a $60 price target, while downgrading its APA rating (NASDAQ: APA) went from outperform to in line with a PT of $39.
in a narrowed group of related Name, Evercore saw Ovintiv (OVV) continues to outperform peers, the stock remains well positioned relative to small and mid-cap peers, and said management has implemented an asset integration process following the acquisition of Permian in 2023 and has dealt with a sharp downward curve.
Evercore said Ovintiv’s (OVV) preliminary drilling and completions performance, which outperformed the market, is now well understood by the market.
In its downgrade, Evercore said preliminary results from APA’s (APA) drilling and completions in the Callon area and preliminary guidance beyond the second half of 2024 “will add some credibility to the stock,” likely in 2024. Achieved in the fourth quarter and the first half of 2025.
The company said the international gas market was proving less dynamic than expected heading into 2024, with a smaller boost from the TTF/JKM Related Charges Agreement (APA) with commercial LNG exporters.
