December 10 Price Targets

Good morning,

Yesterday, December 10, saw nine new price targets set by seven different brokerages. We’ll take a look at these ratings, what they mean, and some of the brokerage’s past performance on their price targets.

JPMorgan Chase & Co: Vermilion Energy

JPMorgan Chase has been bullish on Vermilion Energy since at least February, 2018 when they set a $50 price target when shares were $42.36. Since then, the share price has fallen to $19.53 and their price target has been cut by about the same, down to $23.

Royal Bank of Canada: Transcontinental

Similar to Vermilion, Royal Bank of Canada has been bullish on Transcontinental for about two years now, setting a price target of $28 in December, 2017. Today, the price target is modestly down to $22, but the share price has been cut by more than half and now sits at $12.90. The result is a massive 71% if you trust this latest recommendation.

Canaccord Genuity: Gibson Energy

Again, we have a brokerage who has been universally bullish on a stock. This time, however, Canaccord Genuity called it right, riding a $15.90 share price in March, 2018 up to its current share price of $26.94 - a nearly 70% total return.

Summary

It appears as though the brokerages were perhaps overly optimistic on the stocks covered today. I caution investors to do their own research and take these ratings with a grain of salt. It’s easy to get excited about a huge potential upside in a stock but as you can see from above, it’s not a sure thing.

Good luck!