Gibson Energy Inc T.GEI

Outperform And Hiked to $28

[ace1mccoy]

 

BMO Capital Markets upgraded Gibson Energy Inc.

Analyst Ben Pham raised his price target on shares of the Calgary-based oilfield service company to $28 from $25.50.

"GEI's 2025 capital budget release highlights the optionality of its Gateway Terminal, with a contract extension driving significantly higher revenue for that customer and sanctioned a new project supporting visibility to achieving 15-20% Gateway Terminal EBITDA growth by end of 2025," Pham said in a note to clients.

"Combined with a sharp focus on cost containment, share buybacks expected in 2025 and relative valuation discount (2026 EV/EBITDA of ~9x vs. ~11.5x peer average), we are upgrading shares to Outperform (vs. Market Perform) with an attractive ~23% potential total return to our new target of $28," the analyst said.

10:38 AM EST, 12/05/2024 (MT Newswires) -- BMO Capital Markets upgraded Gibson Energy Inc. (GEI.TO) to Outperform from Market Perform at BMO Capital Markets on Thursday.

Analyst Ben Pham raised his price target on shares of the Calgary-based oilfield service company to $28 from $25.50.

The stock rose $1.80, or 7.5%, to $25.83 on the Toronto Stock Exchange.

"GEI's 2025 capital budget release highlights the optionality of its Gateway Terminal, with a contract extension driving significantly higher revenue for that customer and sanctioned a new project supporting visibility to achieving 15-20% Gateway Terminal EBITDA growth by end of 2025," Pham said in a note to clients.

"Combined with a sharp focus on cost containment, share buybacks expected in 2025 and relative valuation discount (2026 EV/EBITDA of ~9x vs. ~11.5x peer average), we are upgrading shares to Outperform (vs. Market Perform) with an attractive ~23% potential total return to our new target of $28," the analyst said.

[barneyj44]

Love this investment, thankyou for the update.