Imperial Oil price target raised to C$81 from C$78 at Morgan Stanley

Morgan Stanley analyst Devin McDermott raised the firm’s price target on Imperial Oil to C$81 from C$78 and keeps an Equal Weight rating on the shares. The energy sector is experiencing an improving macro backdrop, which has led to a catch-up trend experience in energy stocks, the analyst tells investors. With valuations still 2x the historic discount vs S&P, strong free-cash-flow yields, and positive earnings revisions, the firm sees a path to further outperformance.