Stifel Raises Target Stifel’s Cole Pereira raised his targets for Gibson Energy Inc. (“buy”) to $29 from $28.50 and Keyera Corp. ( “buy”) to $38.50 from $38. The averages are $25.68 and $35.82, respectively.
“Our selectively bullish view on the Canadian Energy Infrastructure sector is unchanged,” said Mr. Pereira. “We continue to prefer names with Montney exposure, however, a recent shift in market expectations towards a “higher for longer” path for interest rates has seen rising corporate bond yields negatively impact sector valuations in the near term. However, we continue to point to the market pricing in 150 basis points of rate cuts from the U.S. Federal Reserve in 2024 as a catalyst for the equities. In terms of project news, we expect most of the focus to be on whether Pembina announces an FID on Cedar LNG alongside 2Q23 results. Furthermore, we also believe Keyera could potentially announce a dividend increase for the first time since 2019, which could be a positive catalyst for the stock. We have made some minor target price changes, but there are no rating changes with this update. Keyera remains our favourite name in the sector, as well as for a trade into 2Q23 results.”