The Globe and Mail reports in its Wednesday, Jan. 25, edition that Desjardins Securities analyst Chris MacCulloch has reaffirmed his "buy" recommendation for Cenovus Energy. The Globe's David Leeder writes in the Eye On Equities column that Mr. MacCulloch gave his share target a $2 boost to $35. Analysts on average target the shares at $33.06. Desjardins's energy researchers, led by Mr. MacCulloch, are shifting away from their previous bullish natural gas thesis "toward a more oil-centric near-term viewpoint." Mr. MacCulloch says in a note: "Although we remain bullish on longer-term natural gas fundamentals, we have been taken aback by how rapidly natural gas markets collapsed following one of the mildest winters (to date) in decades and have likewise trimmed price targets across the board for gas-weighted producers. Conversely, we are growing increasingly bullish on oil prices as China begins reopening amid continued uncertainty with respect to Russian supply and have hiked price targets across the board for oil-weighted producers. Despite a bifurcated near-term commodity price outlook, the environment remains stimulative for all producers, many of which are no longer burdened by debt."
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