BMO Capital analyst Benjamin Pham maintained a Buy rating on Gibson Energy (GBNXF – Research Report) today and set a price target of C$26.00.
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Benjamin Pham has given his Buy rating due to a combination of factors including Gibson Energy’s strong first-quarter results, which exceeded expectations. The company reported robust infrastructure volumes and successfully completed significant projects like the Gateway dredging, contributing to its positive performance. Although there were some concerns regarding debt levels and payout ratios, these are expected to improve with future growth and cost-saving initiatives.
Furthermore, Gibson Energy is fully funded for its 2025 growth capital expenditure, and the company has already realized notable cost savings, with more anticipated by year-end. The potential for increased EBITDA at the Gateway terminal and upcoming projects like the Cactus II Connection and Baytex liquids gathering infrastructure add to the positive outlook. The stock’s attractive dividend yield, strong balance sheet, and favorable valuation compared to peers further support the Buy rating.
In another report released on April 27, RBC Capital also maintained a Buy rating on the stock with a C$26.00 price target.