11:50 AM EDT, 08/04/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of CAD 130, up CAD 22, reflects a combination of our relative valuation and DCF model analyses. On a relative basis, we assume a 7.7x multiple of enterprise value to projected '26 EBITDA, in line with IMO's historical forward average. This approach yields a value of CAD 119 per share. Our DCF model, which assumes free cash flow growth of 4.3% per year for 10 yearsand 2% thereafter, discounted at a WACC of 9%, yields intrinsic value of CAD 141 per share. We cut our '25 EPS estimate by CAD 0.22 to CAD 8.10, and '26's by CAD 0.36 to CAD 8.25. On the one hand, recent movement in crude oil prices has been unfavorable, and bitumen pricing was down sharply year over year in the second quarter. On the other hand, IMO is making material improvements in upstream cash costs, which we think will be sustainable, and we are projecting WTI prices to improve slightly in '26. Finally, we think the WCS differential to WTI will stay relatively tight, which would help IMO.