Ovintiv Inc. (OVV) shares tumbled 5.18% in pre-market trading on Wednesday, following the announcement of its plans to acquire the remaining stake in NuVista Energy Ltd. The cash-and-stock deal, valued at $2.7 billion including debt, aims to strengthen Ovintiv's presence in Canada's Montney basin.

The acquisition marks a significant move for Ovintiv, as it seeks to expand its footprint in the Canadian energy sector. However, the market's initial reaction suggests investors may have concerns about the deal's valuation or its potential impact on Ovintiv's financial position. The substantial size of the transaction, which includes the assumption of NuVista's debt, could be weighing on investor sentiment in the short term.

Despite the negative pre-market reaction, it's worth noting that some analysts maintain a positive outlook on Ovintiv. Mizuho recently raised its target price for the company to $55 from $50, while Siebert Williams Shank & Co reiterated a Buy rating with a $55 price target. These analyst actions suggest that the long-term prospects for Ovintiv may still be favorable, despite the short-term stock price volatility triggered by the acquisition news.