Desjardins downgraded Imperial Oil (IMO) to Sell from Hold with an C$89 price target The firm says softer oil prices and a stronger Canadian dollar are driving its bearish outlook on Canadian oil and gas companies. Imperial Oil is generating sufficient free cash flow to retire only 1.5% of its outstanding shares through buybacks in 2026 after funding the 2.9% dividend yield, which is a “far cry from recent years,” the analyst tells investors in a research note Desjardins believes this an “unfortunate byproduct” of softening oil prices and a “lofty” valuation.
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