Gibson Energy Downgraded to Hold Amid Limited Upside and Long-Term Growth Prospects

TD Cowen analyst Aaron Macneil downgraded the rating on Gibson Energy (GBNXF – Research Report) to a Hold today, setting a price target of C$25.00.

Aaron Macneil has given his Hold rating due to a combination of factors influencing Gibson Energy’s current market position and future prospects. The company’s stock price has recently approached the revised target price of C$25.00, following a period of outperformance. This suggests that the positive aspects of the investment thesis, particularly after the Q4/24 weakness, have been realized, with growth opportunities now appearing more extended in the current market environment.
Aaron Macneil notes that Gibson Energy’s trading valuation is in line with its historical average, indicating limited immediate upside potential. While there are significant growth opportunities on the horizon, they are considered longer-term, and the company’s leverage remains above its target range, which could constrain capital spending and dividend policies. Additionally, further improvements in Gibson’s ranking within the sector and increased estimates are necessary for a higher target price. These factors collectively contribute to the decision to downgrade the stock to a Hold rating.

Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GBNXF in relation to earlier this year.