- RBC Capital analyst Robert Kwan raised the price target for Gibson Energy Inc. (TSX:GEI) (OTC:GBNXF) to C$28 from C$27 with an Outperform rating on the shares.
- Kwan stated that Gibson Energy's shares continue to offer an attractive dividend yield (almost 6%) that is conservatively underpinned by cash flow (68% trailing DCF payout ratio), with confirmed growth expected to drive roughly 5% EBITDA growth into 2023.
- The analyst sees numerous avenues for projects to extend growth past 2023 and increase the overall growth rate.
- Kwan continues to view Gibson Energy's shares as having a high "floor" (i.e., less downside) given the conservative financial structure and the strategic nature of its asset base that could be attractive to potential strategic and financial acquirors.
- Price Action: GEI shares traded higher by 1.65% at C$25.78 on TSX on the last check Wednesday.
