Imperial Oil, a subsidiary of Exxon Mobil, trades separately in Toronto under the ticker IMO. Goldman Sachs has a Buy rating on the stock and just raised its price target from C$79 to C$87. The analysts also raised their EPS estimates by 10.6% in 2022 and by 5.0% in 2023, and lowered their estimate by 5.5% for 2024. The price target and EPS changes reflect updated commodity price assumptions, tweaks to production costs and royalty rates and buyback assumptions. Key risks are falling commodity prices, declining refining margins and operational execution.
Cenovus Energy Inc. (NYSE: CVE) is an integrated energy company that completed a merger in March of 2021 with Husky Energy and set an all-time high stock price earlier this month. The analysts have a Buy rating on the stock and just raised the 12-month price target from $24 to $29. They raised their EPS estimates for 2022 and 2023 by 8.9% and 7.2%, respectively. Cenovus’s EPS are projected to decline by about 8.4% in 2024.
The price target and EPS estimates reflect updated commodity price assumptions, tweaks to production costs and buyback assumptions. Key risks are lower commodity prices, lower refining margins and operational execution.
The final Canadian oil company in the firm’s review is MEG Energy, which trades in Toronto under the ticker symbol MEG and over the counter in the United States (MEGEF). The company has about 2 billion barrels of proved plus probable bitumen reserves at its Christina Lake project. Goldman Sachs maintained a Neutral rating on the shares while raising the price target from C$21 to C$25. The analysts also raised the EPS estimates by 12.1% for 2022 and 13.3% for 2023, while lowering the 2024 price target by 2.6%.
The price target and EPS estimates reflect updated commodity price assumptions, tweaks to production costs and buyback assumptions. Key risks, as always, include falling commodity prices, higher capital spending and operational execution.
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