Analyst Sam Burwell from Jefferies maintained a Buy rating on Gibson Energy and increased the price target to C$29.00 from C$27.00.
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Sam Burwell has given his Buy rating due to a combination of factors that highlight Gibson Energy’s strategic shifts and financial prospects. The company demonstrated a strong performance during its Investor Relations Day, outperforming its peers by approximately 3%. A key factor in the positive outlook is the increase in the company’s Infrastructure EBITDA compound annual growth rate (CAGR) to over 7% through 2030, up from the previous estimate of over 5%.
This growth is partly due to reallocating capacity away from the more volatile Marketing segment towards more stable, contracted business, which is expected to command a higher valuation multiple. Additionally, the positive final investment decision (FID) on the Wink-to-Gateway project is seen as a favorable development, though the market will be attentive to further FIDs. Consequently, the price target for Gibson Energy’s stock has been raised from $27 to $29.
In another report released today, National Bank also upgraded the stock to a Buy with a C$29.00 price target.
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.