Cenovus Energy's (CVE) proposed $5.7 billion acquisition of Athabasca Oil is a "strategically sound step" that will likely allow the company to benefit from more flexibility and diversification in its operating model.

"That the deal doesn't yield much gratification in 2027 is besides the point to us," the note said.

The investment firm noted that Athabasca is "like an oil sands unicorn -- one of the

last remaining (mainly) pure-play public oil sands producers following Cenovus' acquisition of MEG Energy in 2025."

Additionally, Athabasca has a capable shareholder-aligned leadership team, strong balance sheet and deep bitumen resource base, especially at its undeveloped Corner lease," the note said.

The Athabasca acquisition is "relatively neutral/dilutive" when it comes to the investment firm's 2027 adjusted funds from operations per share and FFO per share proforma outlook for Cenovus, RBC said.

RBC kept Cenovus' outperform rating and one-year price target of $51 per share.

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