UBS on Tuesday increased its price objective for Ovintiv Inc. (NYSE: OVV) shares to $58 from $55 while maintaining a Buy recommendation. The brokerage noted the $3 billion sale of the Anadarko assets and a recent acquisition as central to reducing two of the market’s primary concerns about the company - inventory levels of crude and condensate and a high debt burden.
At the time of UBS’s action Ovintiv was trading at $48.52, which UBS says implies roughly 20% upside to its new target. The stock was also trading near its 52-week high of $48.17.
Valuation and modelling
UBS’s $58 target is founded on a 3.75 times 2027 estimated enterprise value to EBITDA multiple on a pro-forma basis. The firm contrasted that multiple with peer group targets - noting 5.0 to 5.75 times for Montney-focused peers and 4.0 to 4.5 times for diversified exploration and production peers. UBS also quantified sensitivity to the multiple, noting that each 0.25 times move in the target multiple shifts its valuation by $4 per share and that consistent application of higher multiples would push implied value above $60 per share.
The brokerage described Ovintiv as trading at one of the lowest multiples in its coverage universe on a pro-forma basis, a factor it continues to flag as part of its investment thesis.
Debt, transactions and operational context
UBS pointed to two recent transactions as central to addressing investor concerns: the company’s acquisition of NVA and the definitive agreement to sell Anadarko-area assets in Oklahoma for $3 billion in cash. The Anadarko disposal covers roughly 360,000 net acres and comprises nearly the entirety of Ovintiv’s positions in that play, with current production tied to the package totaling about 90,000 barrels of oil equivalent per day.
InvestingPro-sourced data cited by analysts shows Ovintiv carries $6.4 billion in total debt and posts a debt-to-equity ratio of 0.63, emphasizing UBS’s focus on trimming leverage as part of value creation.
Broader broker and company updates
In separate broker commentary, BMO Capital reiterated an Outperform rating on Ovintiv and kept a $52 price target. BMO also raised its fourth-quarter 2025 earnings-per-share estimate for Ovintiv to $0.97 from $0.75, attributing the increase to stronger gas realizations and improved performance in the Permian and Montney.
Corporate governance and calendar items were also disclosed by the company. Ovintiv has set March 9, 2026 as the record date for its annual shareholder meeting, scheduled for May 6, 2026. In addition, the company announced the appointment of Gregory P. Hill, formerly of Hess, as an independent director effective January 30, 2026. Hill’s resume includes more than four decades of industry experience, including senior leadership roles at Shell International E&P and Aera Energy.
Near-term catalyst
With earnings due in five days, the analyst note highlighted that five analysts have recently revised earnings estimates upward for the upcoming period, signaling a measure of rising optimism among some sell-side contributors ahead of the print.
Taken together, UBS framed its upgrade as a response to structural improvements in the company’s balance sheet profile and a recalibration of the market’s view on inventory and leverage risk. The move leaves Ovintiv positioned in UBS’s coverage as its top pick among oil exploration and production names.