Globe says Gibson Energy maintained at "outperform" Globe says Gibson Energy maintained at "outperform"
2016-03-04 05:28 ET - In the News
The Globe and Mail reports in its Friday, March 4, edition that Raymond James analyst Chris Cox says Gibson Energy ($17.88) provides investors "an attractive risk/reward opportunity" within the mid-stream group. The Globe's David Leeder writes in the Eye On Equities column that Mr. Cox continues to rate Gibson "outperform." The analyst says: "While the shares have outperformed its peers by an impressive 23 per cent year to date, we believe Gibson continues to trade at a discounted valuation for what should be trough earnings for the company. Furthermore, while the current commodity backdrop is likely to put further pressure on the company's more services-oriented segments, we believe financial performance here is at, or close to, a bottom. Add to this, visible and highly contracted growth from the terminals and pipelines segment and we believe Gibson is likely at an inflection point in its financial performance. ... On the whole, we view Gibson as a unique combination of a high dividend yield, stable balance sheet, visible growth and attractive upside to what we believe will be an eventual recovery in oil prices." Mr. Gibson raised his share target to $23 from $20. Analyst on average target the shares at $19.58.