Goldman Sachs analyst Emily Chieng upgraded Cenovus Energy (CVE) to Buy from Neutral with a 12-month price target of $12 after taking over coverage of the name. The analyst cites the company's "faster-than-anticipated" deleveraging progress, "strong" free cash flow generation and capital returns potential, and "attractive" valuation for the upgrade. While shares are up 40% year-to-date, Cenovus can still outperform as it shifts its capital allocation strategy away from deleveraging and toward capital returns and disciplined growth, Chieng tells investors in a research note. The analyst also reiterates a Sell rating on Husky Energy (HUSKF) and Neutral rating on MEG Energy (MEGEF).