CA - Imperial Oil cut at RBC on valuation while praising operating performance

2023-04-12 12:25:24 ET

Imperial Oil ( NYSE: IMO ) +1.2% in Wednesday's trading even after RBC Capital downgraded the stock to Sector Perform from Outperform with a C$78 price target, trimmed from C$82, to reflect the bank's updated commodity price outlook and higher relative returns elsewhere in its coverage group.

Next catalysts revolve around Imperial Oil's ( IMO ) upcoming April 19 investor open house and the potential for another substantial issuer bid later this year, RBC's Greg Pardy said.

The analyst said his new rating reflects the stock's healthy gains during the past year, fueled by impressive operating performance and the company's commitment to shareholder returns.

Pardy pegged Imperial's ( IMO ) Q1 downstream pre-tax cash flow at $1.05B, reflecting strong utilization rates and a solid crack environment.

Imperial Oil ( IMO ) "continues to possess a very capable leadership team, strong balance sheet and long-life, low-decline upstream portfolio," Pardy wrote.

With Imperial Oil ( IMO ) hitting its stride with production records including the Kearl oil sands, Scotiabank recently upgraded the stock .

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