RBC Raises Target G&M * RBC’s Robert Kwan raised his Gibson Energy Inc. (
) target to $28 from $27, reiterating an “outperform” recommendation. The average is $25.88.
“Gibson Energy’s shares continue to offer an attractive dividend yield (almost 6 per cent) that is conservatively underpinned by cash flow (68-per-cent trailing DCF payout ratio) with confirmed growth that we expect to drive roughly 5-per-cent EBITDA growth into 2023,” he said. “Further, we see numerous avenues for projects to extend growth past 2023 as well as increase the overall growth rate. Finally, we continue to view Gibson Energy’sshares as having a high ‘floor’ (i.e., less downside) given the conservative financial structure and the strategic nature of its asset base that could be attractive to potential strategic and financial acquirors.”