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Investing.com - Jefferies upgraded Gibson Energy (TSX:GEI) (OTC:GBNXF) from Hold to Buy and raised its price target to C$28.00 from C$23.00 on Wednesday.
The investment bank cited the company’s underappreciated growth profile, particularly highlighting Gibson’s South Texas Gateway crude export facility, which it described as "world-class."
Jefferies noted that Gibson Energy offers a dividend yield exceeding 7% on an investment-grade rated entity with growing fee-based EBITDA driven by its crude export asset positioned at "the tail end of the Permian."
The firm emphasized that Gibson’s total return potential, calculated as 2024-27 estimated EBITDA compound annual growth rate plus dividend yield, ranks as the highest among all companies in Jefferies’ Midstream coverage universe.
Gibson Energy, a Canadian midstream energy company, operates infrastructure assets including terminals, pipelines, storage facilities, and processing plants across North America.
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