Tariq Saad, an analyst from BMO Capital, maintained the Hold rating on International Petroleum Corporation (IPCO – Research Report). The associated price target remains the same with C$20.00.
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Tariq Saad has given his Hold rating due to a combination of factors related to the International Petroleum Corporation’s strategic developments and market positioning. A key focus is the Blackrod Phase 1 project, where IPC has made significant progress, yet full fruition is not expected until late 2026. The project is anticipated to positively impact future cash flows, but current well rates suggest a slower ramp-up compared to industry averages.
Additionally, despite the potential for a second phase at Blackrod, which could enhance long-term growth, there are uncertainties about its sanctioning depending on the success of the first phase and broader market conditions. Furthermore, while IPC is undertaking an active buyback program to drive per-share growth, its current valuation seems high compared to peers, with an EV/EBITDA ratio of approximately 8.0x against an industry average of 3.5x. This valuation, alongside the belief that much of the project’s future benefits are already reflected in the share price, suggests that other companies might provide better near-term value, hence the Hold rating.
According to TipRanks, Saad is ranked #7554 out of 9369 analysts.
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