Gibson Energy stock rating cut at JPMorgan to neutral

Published 05/02/2025, 10:06
Gibson Energy stock rating cut at JPMorgan to neutral

On Wednesday, JPMorgan analysts downgraded Gibson Energy (TSX:GEI:CN) (OTC: GBNXF) from Overweight to Neutral, setting a price target of C$26.00. The adjustment came after the company announced that Senior VP & CFO Sean Brown has resigned effective immediately. Riley Hicks, Senior VP of Corporate Development and Marketing Strategy, will assume the role of CFO.

This executive change follows the July appointment of President & CEO Curtis Philippon. At that time, JPMorgan analysts emphasized the importance of retaining CFO Brown to sustain market confidence. Brown’s nine-year tenure was marked by guiding Gibson through significant transformations and consistently meeting market expectations. His departure is viewed as a substantial loss by the analysts.

JPMorgan had previously upgraded Gibson’s rating to Overweight in mid-2023, citing accretive benefits from the Gateway acquisition, a notable discount compared to Canadian C-Corp peers, and sustained long-term shareholder returns. These factors were central to JPMorgan’s investment thesis.

The company’s recent 2025 capital guidance, which included plans for share repurchases and Gateway project growth, was well-received by the market. However, with these catalysts now largely realized, the analysts believe that Gibson Energy’s stock is approaching full valuation. The C$26 price target suggests an approximate 13% total shareholder return upside from current prices.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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