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UBS Keeps Ovintiv (OVV) as Top E&P Pick, Raises Price Target to $58

Ovintiv Inc. (NYSE:OVV) is among the 15 Undervalued Momentum Stocks That Are Taking Off.

On February 18, UBS reiterated Ovintiv Inc. (NYSE:OVV) as its top Oil E&P pick following the announcement of the $3 billion Anadarko Basin divestiture. The firm also raised its price target on the stock from $55 to $58 and reaffirmed a Buy rating.

The analyst noted that the combined impact of the NuVista deal and the Anadarko sale helps the company address investor concerns about crude and condensate inventory and leverage. Despite these structural improvements, Ovintiv continues to trade at one of the lowest valuation multiples within the E&P peer group. UBS argues that, in view of these changes, the current discount would be increasingly difficult to justify. Thus, the analyst appears to suggest scope for multiple expansion.

A day earlier, Ovintiv Inc. (NYSE:OVV) announced an agreement to sell its Anadarko assets in Oklahoma for $3.0 billion in cash to a buyer whose identity has not been disclosed. The divestiture includes roughly 360,000 net acres, representing substantially all of Ovintiv’s acreage in the play. The transaction is expected to close in early Q2 2026.

On the announcement, Brendan McCracken, Ovintiv President and CEO, stated:

”This transaction marks a significant milestone by focusing our portfolio, delivering on our debt target, and unlocking increased returns to our shareholders.” He further added, “We have built one of the deepest premium inventory positions in our industry in the two most valuable plays in North America, the Permian and the Montney. This positions us to deliver superior returns for our shareholders for many years to come.”

Management also plans to provide updated 2026 guidance and a revised shareholder return framework alongside Q4 and full-year 2025 results on February 23, 2026.

Ovintiv Inc. (NYSE:OVV) is a leading North American energy producer focused on developing its multi-basin portfolio of oil, natural gas liquids, and natural gas producing plays.

While we acknowledge the risk and potential of OVV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OVV and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT:  12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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