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Investing.com - BMO Capital downgraded Gibson Energy (TSX:GEI) (OTC:GBNXF) from Outperform to Market Perform while raising its price target to C$27.00 from C$26.00.
The rating change follows a recent run-up in Gibson Energy’s stock price, which BMO Capital believes now fully reflects the company’s positive growth outlook, particularly its initiatives at Gateway.
BMO Capital noted that Gibson Energy has successfully grown its EBITDA and free cash flow despite its Marketing segment operating at bottom-of-cycle levels with tight differentials.
The research firm acknowledged over C$1 billion of potential growth opportunities not yet incorporated into its new C$27 price target, up from the previous C$26 target.
BMO Capital characterized these additional growth projects as "longer-dated," which factored into its decision to lower the rating despite maintaining a "positive view" on the company’s growth initiatives.
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