Imperial Oil downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs analyst Neil Mehta downgraded Imperial Oil (IMO) to Sell from Neutral with an unchanged price target of C$90, which implies 14% downside from current levels. Following the stock’s outperformance, Goldman sees a “less compelling valuation” for Imperial relative to peers. The stock trades at an 8%/9% free cash flow yield compared to peer average of 10%/11%, on 2025 and 2026 estimates, respectively, the analyst tells investors in a research note. The firm believes the stock’s value proposition is “less differentiated” and estimates lower capital returns yield relative to peers.