We raise our TP for IPC to SEK 55 (40) on the back of: i) the improvements in Canadian oil market fundamentals, with WCS differentials having stabilized at a ~15 USD/bbl discount to Brent, ii) oil and gas prices having surprised on the upside since our previous update, and iii) the company’s strong H1 performance. IPC has so far delivered on its FCF promises and with ~25% FCF yield estimated in 2022 and a P/core NAV at 0.72x, we believe the repricing will continue.
