Ovintiv's (OVV) streamlined portfolio, resource depth, and enhanced shareholder returns signal ongoing share price appreciation and multiple expansion over time, RBC Capital Markets said in a Tuesday research report.

The company's robust well performance in the Montney basin offsetting higher royalties amid ongoing efficiency gains in 2026 is a positive, analysts wrote.

The company delivered robust Q1 results and optimized its portfolio around the Montney and Permian basins, according to the note.

The first pad drilled by the company post-close of the NuVista acquisition achieved $1 million capital synergies driven by enhancements, including design optimization and faster drilling times, according to the firm. RBC said it expects 2026 free cash flow of $2.8 billion.

The brokerage said it reiterated its outperform rating on the stock and price target of $70 per share.

Price: 57.38, Change: -0.72, Percent Change: -1.23