Morgan Stanley has revised its price target for Imperial Oil (IMO, Financial), reducing it from C$92 to C$88. The investment firm maintained its Equal Weight rating on the company's shares amidst ongoing fluctuations in the oil market. As part of its broader evaluation of North American energy stocks, the firm has updated its financial projections to reflect the recent downturn in oil prices.
The revised estimates suggest that cash flow forecasts for 2025-2026 may fall below market consensus, highlighting potential financial challenges for the company in the coming years. The firm has also indicated a need for caution, acknowledging that the current market environment is marked by uncertainty, particularly for smaller and mid-sized producers or those facing execution risks.
Despite these adjustments, Morgan Stanley's overall perspective on the exploration and production (E&P) sector remains In-Line. The analysis reflects an understanding of the soft oil market fundamentals that are expected to persist in the near to medium term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Imperial Oil Ltd (IMO, Financial) is $74.28 with a high estimate of $79.33 and a low estimate of $67.79. The average target implies an upside of 18.49% from the current price of $62.69. More detailed estimate data can be found on the Imperial Oil Ltd (IMO) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Imperial Oil Ltd's (IMO, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Imperial Oil Ltd (IMO, Financial) in one year is $77.09, suggesting a upside of 22.97% from the current price of $62.69. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Imperial Oil Ltd (IMO) Summary page.
