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Investing.com - BMO Capital has raised its price target on Imperial Oil Limited (NYSE:IMO) to $120.00 from $118.00 while maintaining an Outperform rating following the company’s quarterly results. The stock, currently trading at $83.86, sits near its 52-week high of $86.26, having delivered an impressive 37.27% return year-to-date.
Imperial Oil delivered a strong quarter that beat consensus expectations, primarily due to higher-than-expected production from its Kearl Lake operations, according to BMO Capital. The company, with a market capitalization of $42.45 billion, maintains a healthy P/E ratio of 12.66 and boasts a "GREAT" overall financial health score according to InvestingPro.
The research firm noted that Imperial Oil shares have outperformed peers year-to-date and currently trade at a material premium to the sector.
BMO Capital highlighted that Imperial shares have performed well during both rising and falling oil price environments, benefiting from the company’s ability to consider share buybacks when prices rise, while being protected by low breakeven costs, lower liquidity, and downstream operations when prices fall.
The firm expects this trend to continue as Imperial Oil accelerates its Normal Course Issuer Bid (NCIB) program, which allows the company to repurchase its own shares.
In other recent news, Imperial Oil announced its second-quarter earnings for 2025, showcasing a notable performance in terms of earnings per share (EPS) but not meeting revenue expectations. The company reported an EPS of $1.86, exceeding analysts’ predictions of $1.57 by 18.47%. However, Imperial Oil’s revenue was $11.23 billion, falling short of the anticipated $12.12 billion by 7.34%. Despite the revenue miss, the company’s profitability appeared to bolster investor confidence. These developments come amidst various strategic initiatives undertaken by the company. No information on mergers was disclosed in the recent updates. Additionally, there were no analyst upgrades or downgrades reported in the latest news. These recent developments underscore Imperial Oil’s financial performance and strategic positioning.
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