Gibson Energy Receives a Buy from Desjardins

By Austin Angelo

Gibson Energy (TSX: GEI), the Materials sector company was revisited yesterday, and remains undervalued for at least one analyst on the street. Desjardins’ analyst Justin Bouchard reiterates their Buy rating on the shares, with a C$22 price target.

According to, Bouchard is ranked 0 out of 5 stars with an average return of -8.9% and a 33.0% success rate. Bouchard covers the Basic Materials sector, focusing on stocks such as Athabasca Oil Corporation, Inter Pipeline Ltd, and Gibson Energy Inc.

Currently, the analyst consensus on Gibson Energy is Moderate Buy and the average price target is C$20.31, representing a 14.0% upside.

In a report released yesterday, Canaccord Genuity also reiterated a Buy rating on the stock with a C$21 price target.

Gibson Energy’s market cap is currently C$2.54B and has a P/E ratio of 0.

Gibson Energy, Inc. engages in the movement, storage, blending, processing, marketing, and distribution of crude oil, condensate, natural gas liquids, water, oilfield waste, and refined products. It operates through the following segments: Terminals and Pipelines; Environmental Services; Truck Transportation; Propane and NGL Marketing and Distribution; Propane and NGL Marketing and Distribution; and Marketing. The Terminals and Pipelines segment includes fee-based storage and terminalling services and tariff-based pipeline services for crude oil, condensate and refined products. The Environmental Services segment provides environmental and production services, such as emulsion hauling and treating, water hauling and disposal services, and oilfield waste management, as well as exploration support services and accommodation facilities to the oil and gas industry. The Truck Transportation segment offers hauling services for crude oil, condensate, propane, butane, asphalt, sulfur, petroleum coke, gypsum, emulsion, waste water and drilling fluids, as well as hydrovac services. The Propane and NGL Marketing and Distribution segment comprises of industrial propane distribution operation and a wholesale business that includes wholesale propane distribution and an NGL marketing business. The Processing and Wellsite Fluids segment processes crude oil and markets variety of products, including road asphalt, roofing flux, frac oils, light and heavy straight run distillates, combined vacuum gas oil, oil based mud product and tops. The Marketing segments consists of purchasing, selling, storing, and blending of crude oil and condensate, providing aggregation services to producers and earning margins through aggregation and capturing quality, location or time-based arbitrage opportunities. The company was founded on April 21, 2011 and is headquartered in Calgary, Canada.

The company’s shares closed last Monday at $17.81.