Imperial Oil (IMO) Rating Lowered to Hold at Zacks Investment Research

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Zacks Investment Research lowered shares of Imperial Oil (NYSEAMERICAN:IMO) (TSE:IMO) from a buy rating to a hold rating in a research note published on Thursday.

According to Zacks, “Imperial Oil’s integrated business model provides it with high level of stability, reducing the risk profile of the company. Especially, with the widening crude oil price differentials in Canada impacting upstream revenues, IMO’s downstream and chemical segments have acted as a booster. Ramp-up activities in the company’s upstream and downstream assets is expected to further augment its income and revenues. Balance sheet strength and investor-friendly moves are other positives in the IMO story. However, lack of takeaway capacity along with high breakeven costs associated with oil sands operations limit its margins. Prolonged delays in the company’s major oil sands project Aspen is also a cause of concern. The interplay of these factors account for our cautious stance on IMO.”

IMO has been the subject of a number of other reports. Goldman Sachs Group upgraded shares of Imperial Oil from a sell rating to a buy rating in a research report on Friday, October 19th. GMP Securities upgraded shares of Imperial Oil from a hold rating to a buy rating in a research report on Thursday, November 8th. TD Securities restated a hold rating on shares of Imperial Oil in a research report on Thursday, November 8th. Royal Bank of Canada restated a hold rating on shares of Imperial Oil in a research report on Thursday, November 8th. Finally, Barclays upgraded shares of Imperial Oil from an equal weight rating to an overweight rating in a research report on Monday, November 12th. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and five have issued a buy rating to the company’s stock. The stock has a consensus rating of Hold and an average price target of $45.25.

NYSEAMERICAN:IMO opened at $31.89 on Thursday. Imperial Oil has a fifty-two week low of $25.91 and a fifty-two week high of $34.56.

Imperial Oil (NYSEAMERICAN:IMO) (TSE:IMO) last posted its quarterly earnings data on Friday, November 2nd. The energy company reported $0.75 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.67 by $0.08. The company had revenue of $9.73 billion for the quarter, compared to analyst estimates of $10.67 billion. The business’s revenue was up 36.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.44 earnings per share.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Schroder Investment Management Group raised its position in shares of Imperial Oil by 1.6% in the third quarter. Schroder Investment Management Group now owns 3,982,440 shares of the energy company’s stock valued at $166,466,000 after buying an additional 63,266 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. raised its position in shares of Imperial Oil by 29.6% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,778,725 shares of the energy company’s stock valued at $57,520,000 after buying an additional 405,925 shares during the last quarter. Toronto Dominion Bank raised its position in shares of Imperial Oil by 78.8% in the second quarter. Toronto Dominion Bank now owns 1,558,572 shares of the energy company’s stock valued at $52,534,000 after buying an additional 686,675 shares during the last quarter. Point72 Asset Management L.P. raised its position in shares of Imperial Oil by 827.0% in the third quarter. Point72 Asset Management L.P. now owns 1,436,918 shares of the energy company’s stock valued at $46,482,000 after buying an additional 1,281,918 shares during the last quarter. Finally, Legal & General Group Plc raised its position in shares of Imperial Oil by 6.9% in the second quarter. Legal & General Group Plc now owns 1,171,883 shares of the energy company’s stock valued at $38,930,000 after buying an additional 75,395 shares during the last quarter.

Imperial Oil Company Profile

Imperial Oil Limited explores for, produces, and sells crude oil and natural gas in Canada. The company operates through three segments: Upstream, Downstream, and Chemical. The Upstream segment explores for and produces crude oil, natural gas, synthetic oil, and bitumen. As of December 31, 2017, this segment had 450 million oil-equivalent barrels of proved undeveloped reserves.

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