Analysts Trim Price Targets on Imperial Oil (IMO)
Imperial Oil Limited (NYSEAMERICAN:IMO) is included among the 11 Best Performing Energy Stocks in 2025.
Imperial Oil Limited (NYSEAMERICAN:IMO) produces high-quality fuels, lubricants, and chemical products marketed under the Esso and Mobil brands.
On December 16, TD Securities slightly lowered its price target on Imperial Oil Limited (NYSEAMERICAN:IMO) from C$107 to C$106, but maintained a ‘Sell’ rating on the shares. IMO received a blow also earlier on December 15 when BMO Capital downgraded the stock from ‘Outperform’ to ‘Market Perform’, with its price target trimmed from C$132 to C$129. According to the analyst, while Imperial boasts one of the strongest financial positions, it offers limited short-term upside potential, and several industry peers offer more attractive relative value to investors.
The cautious analyst outlook comes despite Imperial Oil Limited (NYSEAMERICAN:IMO) announcing plans to increase its FY 2026 capital spending on December 15. While many oil companies have been tightening spending amid a slump in oil prices, Imperial is targeting C$2 billion-C$2.2 billion in capital and exploration expenditures for 2026, up from the C$1.9 billion-C$2.1 billion range it estimates to spend in the current year.
As a result, Imperial Oil Limited (NYSEAMERICAN:IMO) expects its upstream production to be in the range of 441,000 to 460,000 boepd next year, compared with 433,000 to 456,000 boepd projected for 2025. However, refinery throughput is forecast at 395,000 – 405,000 barrels per day in 2026, down from 405,000 – 415,000 bbl/day expected this year, due to the planned turnaround activity at the company’s Sarnia and Strathcona refineries.
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