Tudor, Pickering, Holt on Monday reiterated its buy rating on the shares of Imperial Oil (IMO.TO, IMO) with a C$115.00 price target after the oil producer and refiner staged in annual investor day presentations.

"IMO hosted investors and sell-side in Toronto last Thursday for its 2025 Investor Day, which provided incremental detail on the path to improving capital efficiency on productivity / utilization and structural costs. While it was helpful to hear more on key moving pieces, near-term guidance and thought processes around financial priorities were reiterated, making for a neutral trading day (IMO +2.5% vs. SU / CVE / CNQ +2.6% on average). Some items that stood out were (i) the scope of improvements that will cut costs at Kearl and Cold Lake to $18/bbl and $13/bbl (FY'24 $19.67 and $14.75), respectively, which have so far included 223 improvements with another 115+ in progress; (ii) productivity improvement specifics at Kearl (FY'24 included >150 days at >300mbopd; turnarounds to transition to 4-year intervals by 2027 from 2-year intervals starting in 2021, with duration shortened as well) and Cold Lake (SOR to decrease from 4.4 FY'24 to 3.5 by 2030); (iii) Syncrude efficiencies targets (C$200MM by 2027, incl. C$100MM achieved 2021-2024); and (iv) the emphasis on AI and robotics as part of ongoing innovation," analyst Jeoffrey Lambujon wrote.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 89.57, Change: +1.20, Percent Change: +1.36