Scotiabank has adjusted its outlook on Africa Oil (AOIFF, Financial), reducing the price target from C$2.75 to C$2.50 while maintaining an Outperform rating. This change is part of a broader update by the firm on Canadian exploration and production (E&P) stocks.
The revision reflects concerns about the impact of anticipated weak global oil prices on Canadian oil benchmarks in the coming years, particularly 2025 and 2026. Despite the lowered price target, the continued Outperform rating suggests that the firm still sees potential in Africa Oil's performance relative to its peers.
This update signals a cautious approach by Scotiabank as it navigates fluctuating oil market conditions and their implications for Canadian oil companies.
