** Brokerages welcome Cenovus Energy’s C$7.9 billion ($5.72 billion) cash-and-stock deal to acquire peer MEG Energy
** Gerdes Energy Research raises PT on CVE by C$2 to C$32, a premium of 51.2% to stock’s closing price on Friday
** The deal will give “an approximate 6% improvement in oil sands capital intensity,” Gerdes said
** Brokerage Desjardins raises PT to C$29 from $C27.5, a ~37% upside to last close
** “While the transaction would be modestly dilutive, reflecting CVE’s depressed valuation, we view the consolidation of Christina Lake as a strategic masterstroke” – Desjardins
** Brokerage believes CVE is well-positioned to surpass the ~C$400m of identified synergies while delivering top-decile capital efficiencies
** ATB Capital Markets raises its PT to C$28 from C$25
** 16 out of 17 brokerages rate the stock “buy” or higher and 1 “sell”; their median PT is C$26.5 – data compiled by LSEG
** As of last close, CVE shares up 4.1% YTD
(Reporting by Sumit Saha in Bengaluru)