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Investing.com - RBC Capital has raised its price target on Imperial Oil Ltd. (TSE:IMO) (NYSE:IMO) to C$115.00 from C$108.00, while maintaining a Sector Perform rating on the stock. The $47.7B market cap company has demonstrated remarkable momentum, with a 55.69% year-to-date return and currently trades at $93.43.
The price target increase represents a 6% upward revision for the Canadian energy company, which RBC believes offers both offensive and defensive characteristics for energy investors.
RBC highlighted Imperial Oil’s balance sheet strength, advantaged capital intensity, low WTI break-even price, and commitment to returning cash to shareholders as key factors supporting the higher valuation.
The investment bank noted that Imperial Oil "appears to have arrived from a relative valuation standpoint," suggesting the stock has reached appropriate valuation levels compared to peers.
RBC indicated it could adopt a more bullish stance toward Imperial Oil shares in the event of a relative pullback in the stock price.
In other recent news, Imperial Oil reported its second-quarter earnings for 2025, showcasing a notable earnings per share (EPS) of $1.86, which exceeded analyst expectations of $1.57. Despite this positive earnings performance, the company reported revenue of $11.23 billion, which fell short of the projected $12.12 billion. Additionally, BMO Capital raised its price target for Imperial Oil to $120, up from $118, while maintaining an Outperform rating, attributing the decision to the company’s strong quarterly results. The performance was bolstered by higher-than-expected production from the Kearl Lake operations. In governance updates, Imperial Oil announced the appointment of Tanya Bryja to its board of directors, effective September 16, 2025. Bryja, who currently serves as ExxonMobil’s Senior Vice President of Energy Products, brings over 27 years of experience to the role. These developments highlight the company’s ongoing strategic initiatives and leadership changes.
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