$CVE

The TSX Composite Index approached a record high, driven by gains in banking and energy sectors. BMO, Scotiabank, RBC, TD Bank, and CIBC reported strong earnings. Energy stocks rose despite lower oil prices. Miners fell as gold prices declined.

Eni S.p.A. (NYSE:E) plans to deploy a commercial fusion power plant in Europe by the early 2040s, investing over $1 billion in Commonwealth Fusion Systems. Eni also aims to build a business around fuel systems for fusion plants. Commonwealth Fusion Systems raised $1 billion in July, targeting a 400-MW plant in Virginia by the early 2030s. Other oil companies like Equinor, Chevron, Shell, and Cenovus are also investing in fusion technologies.

Canada's top TSX exporters, including Royal Bank, Enbridge, Suncor, and Teck Resources, face new 50% U.S. tariffs on C$20B of goods. Canada plans retaliation. Banks, energy, and materials sectors are most exposed, with companies reporting significant U.S. revenue and market volatility. Some banks rallied despite tariffs, while oil prices fell.

National Bank Financial downgraded Nutrien Ltd. (NTR) to 'sector perform' due to valuation concerns, though its target price rose to $77. Cenovus Energy (CVE) was reaffirmed as 'outperform' with a $60 target. TD Cowen finds H&R REIT's (HR.UN) takeover bid 'underwhelming', lowering its target to $11. High Tide (HITI) was seen as having 'meaningful incremental value'.

Cenovus Energy CEO Jon McKenzie, also chair of the Canadian Association of Petroleum Producers, expressed hope for a deal on a $16.5-billion carbon capture project, despite missed deadlines. The project, proposed by the Oil Sands Alliance, requires government support and regulatory policy framework to proceed. McKenzie emphasized the need for competitive policies to attract capital and support a proposed West Coast oil pipeline. The federal and Alberta governments are negotiating carbon pricing

Cenovus Energy (CVE) benefits from high oil prices, with WTI trading above $85/barrel, per Oilprice.com. The EIA projects WTI to average $80.88/barrel in 2023, supporting CVE's upstream operations. CVE's shares rose 113.5% over a year, trading at a 12-month EV/EBITDA of 5.96X. Chevron (CVX) and ConocoPhillips (COP) also stand to gain from elevated oil prices.

Goldman Sachs analyst Neil Mehta maintained a Buy rating on Cenovus Energy (CVE) with a $40.00 price target. Shares closed at C$44.83. Morgan Stanley also issued a Buy, while J.P. Morgan kept a Hold. Insider sentiment is negative, with more selling activity recently. The stock has a 1-year range of C$20.63 to C$45.73.

RBC Global Asset Management's Scott Lysakowski, overseeing $25.6B, remains optimistic about Canadian equities. His PH&N Dividend Income Fund, with 17.6% YTD returns, added Alimentation Couche-Tard (ATD.TO) and Cenovus Energy (CVE.TO), citing growth prospects, and sold Telus (T.TO) due to free cash flow pressures.

Cenovus Energy (CVE) reported Q2 2026 upstream production of 970,000 Boe/d, raising 2026 guidance to 970,000-1.01 MMBoe/d. It targets 1.1 MMBoe/d by 2028, backed by projects like Christina Lake North and Sunrise optimization. Sunoco (SUN) and ExxonMobil (XOM) also outlined growth plans, with SUN aiming for a 100,000 bbl/d increase by 2028 and XOM expecting 9% annual growth through 2030. CVE shares rose 118.6% over the past year, trading at a 5.96X EV/EBITDA ratio.

Canada's major oil producers, including Canadian Natural Resources, Imperial Oil, Suncor Energy, Cenovus Energy, and ConocoPhillips Canada, aim to decide on the Pathways carbon capture project by late 2027. The project, targeting 6 million tonnes of emissions reduction, is crucial for growing oil production while managing emissions. The Oil Sands Alliance expects fiscal terms agreements with governments by mid-November, with costs and regulatory approvals pending.