Analyst Actions: Imperial Oil Target Cut, But Keeps Sector Underperformer at CIBC World Markets
Costs at Imperial Oil Ltd.'s (IMO.TO) Kearl oil sands have increased 20%, based on information collected by CIBC World Markets Inc. analyst Andrew Potter. He notes that Kearl is now heading into the second half of its construction - typically where the greatest cost pressures occur, the Globe and Mail said.
As such, he expects Imperial Oil's spending to remain in the $4 billion to $5 billion per year range for the foreseeable future, leaving little in the way of free cash flow, it added.
Potter cut his price target by $1.50 to $48.50 and maintained a Sector Underperformer rating.
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