January 11, 2018 / 1:04 PM / a year ago

BUZZ-Imperial Oil: Eight Capital starts with "sell", sees tough days ahead

** Eight Capital starts coverage on Canadian oil sands co with “sell” rating; joins a long list of bearish recommendations

** “IMO has suffered too many setbacks of late in the oil sands which are negatively impacting overall project returns” analysts wrote in a client note

** Brokerage expects “dramatic” drop in potential size of share buybacks, while free cash flow likely to plunge over next two years vs. 2017

** Canadian oil sand cos have been under pressure ever since cheap oil during U.S. shale boom pulled away customers

** IMO, which falls in last place of brokerage’s coverage universe, has a poor history of meeting Street estimates for quarterly results, analysts says

** 10 of 21 brokerages rate IMO “sell”, 10 others “hold” and only 1 “buy”

** Up to Wednesday’s close, IMO shares have fallen ~20 pct in past 12 months (Reporting by Yashaswini Swamynathan in Bengaluru)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below