Cenovus Energy Inc (CVE)

[eFinanceMarkets]

Cenovus Energy upped to Buy, MEG Energy cut to Hold at TD Securities
Cenovus Energy (CVE -0.8%) is upgraded to Buy at TD Securities, which calls the stock a "chronic underperformer" and sees an attractive entry point with shares -17% YTD.
TD notes CVE's own disclosures that indicate the need for $45-$50 West Texas crude prices to fully fund its sustaining capital, corporate cost and dividend payouts, but focuses on CVE's "pristine balance sheet and sharp cost structure improvements."
TD also downgrades MEG Energy (OTCPK:MEGEF -4.6%) to Hold, highlighting the company's debt position rather than the quality and execution of the Christina Lake project.
MEG's first debt tranche is not due until 2023, so "although it can wait patiently for an improvement in fundamentals, most investors likely require line-of-sight to material deleveraging" over 18-24 months, the firm says.