J.P. Morgan analyst Jeremy Tonet downgraded the rating on Gibson Energy (GBNXF – Research Report) to a Hold yesterday, setting a price target of C$26.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Jeremy Tonet has given his Hold rating due to a combination of factors suggesting a more balanced risk/reward profile for Gibson Energy. The immediate resignation of Senior VP & CFO Sean Brown is seen as a significant loss, given his critical role in guiding the company through a transformative period over the last nine years. The change in leadership creates uncertainty, which can affect market confidence.
Additionally, while the Gateway acquisition and share repurchases have been well-received by the market, resulting in some positive momentum, these catalysts are now largely accounted for, leaving less room for further immediate upside. The stock appears to be fully valued, with a price target of C$26 suggesting a modest 13% total shareholder return, which is lower compared to the average of 18% upside observed in similar Canadian corporations. As such, the combination of leadership changes and valuation considerations underpins a more cautious outlook, justifying the Hold rating.
In another report released on January 28, Jefferies also downgraded the stock to a Hold with a C$26.00 price target.