Cenovus Energy's (CVE.TO) stock rating and price target were downgraded at National Bank while the target was cut at RBC Capital Markets after the company reported results for the fourth quarter of 2024.

RBC Capital Markets said Thursday that it cut Cenovus' price target to $25 from $26 while maintaining its Outperform rating.

National Bank of Canada on Thursday also reduced Cenovus' price target to C$25 from $28 while its stock rating was downgraded to Sector Perform from Outperform.

For its part, RBC noted Cenovus delivered mixed fourth-quarter performance amid 1% better
upstream production of 816,000 boe/d and bottom-line results that were in-line with the bank's estimates, but shy of market expectations.

"Our constructive stance towards Cenovus reflects its upstream operating momentum and growth, strong balance sheet, solid leadership team and shareholder returns policy," RBC said. "But its soft quarterly results continue to weigh heavily on market sentiment. Like a fine wine, Cenovus' outlook should improve with time, but sustained improvement in its US refinery segment remains a key ingredient supporting relative outperformance."

Meanwhile, National Bank said its revised target price was based on a 5.0x 2025e EV/DACF multiple (down from 5.5x), which is a discount to its peers and reflects the lower margin downstream segment.

National added it has "growing concerns" around the company's culture now that as many as four to five members of senior management have departed over the last six months.

"As margin capture improves and the management transition and integration evolves with no cultural or operational disruptions, we see meaningful upside potential to today's equity value," the bank said.

Cenovus' share price was down 4% at last look on the TSX, amid broader market losses.