BMO Capital Markets Lowers Gibson Energy Price Target to C$25

Gibson Energy (TSE:GEI) saw its price target revised down from C$26.00 to C$25.00 by BMO Capital Markets in a research report released on the morning of November 3, 2023. This adjustment reflects a broader trend, as several financial institutions have recently modified their projections for the company.

On the same day, TD Securities lowered its price target from C$24.00 to C$23.00 while maintaining a “hold” rating on the stock. Earlier, on November 5, CIBC also reduced their forecast, adjusting their target price for Gibson Energy from C$27.00 to C$26.00.

In contrast, Wells Fargo & Company increased their price target for Gibson Energy from C$23.00 to C$24.00 on July 30, 2023. Similarly, JPMorgan Chase & Co. raised their target from C$24.00 to C$25.00, designating the stock as “underweight” on August 20, 2023. The Royal Bank of Canada also expressed optimism, increasing their price objective from C$25.00 to C$26.00 and assigning an “outperform” rating on July 30, 2023.

Investor sentiment towards Gibson Energy varies, with one analyst issuing a “Strong Buy” rating, four analysts providing a “Buy” rating, six assigning a “Hold” rating, and one expert issuing a “Sell” rating. According to data from MarketBeat.com, the stock currently holds a consensus rating of “Hold” and an average target price of C$25.86.

Recent Performance and Earnings

In its latest financial disclosures, Gibson Energy reported earnings on November 3, 2023, revealing earnings per share (EPS) of C$0.28 for the quarter. The company generated revenue of C$2.88 billion during this period. Gibson Energy’s return on equity stood at an impressive 22.60%, while its net margin was recorded at 1.73%.

The fluctuation in price targets has not significantly affected the stock’s performance recently, although it experienced a decline of 1.8%.

Insider Transactions and Ownership

In related developments, Maria Hooper, a director at Gibson Energy, acquired 5,000 shares of the company’s stock on August 18, 2023. The transaction occurred at an average price of C$25.72 per share, totaling approximately C$128,600. Following this acquisition, Hooper’s holdings increased to 5,000 shares, valued at around C$128,600. Company insiders currently hold about 0.85% of the company’s stock.

About Gibson Energy

Gibson Energy Inc. operates as an oil infrastructure company, specializing in the collection, storage, and processing of crude oil and refined products. Its operations are divided into two main segments: marketing, which involves the buying, selling, and optimization of products including crude oil and natural gas liquids, and infrastructure, which comprises a network of oil terminals, rail loading facilities, pipelines, and oil processing facilities.

As Gibson Energy navigates these market changes, analysts and investors alike will be closely monitoring both the company’s performance and external market conditions that may impact its future.