Jefferies analyst Sam Burwell maintained a Buy rating on Gibson Energy yesterday and set a price target of C$28.00.
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Sam Burwell has given his Buy rating due to a combination of factors including Gibson Energy’s performance and market conditions. Despite the company’s third-quarter EBITDA being slightly below consensus estimates, it aligned with Burwell’s projections, indicating stability in their financial performance. The marketing segment performed better than anticipated, which is a positive sign for the company’s revenue streams.
Furthermore, the company’s export volumes showed some fluctuation, but the overall outlook remains promising. The recent drop in stock price, attributed to crude market weakness, presents a potential buying opportunity as the company is expected to provide more insights into export volume volatility and EBITDA sensitivity. Additionally, the company’s lower-than-expected leverage ratio suggests a stronger financial position, which supports the Buy recommendation.
In another report released on October 26, RBC Capital also maintained a Buy rating on the stock with a C$27.00 price target.