** Brokerage RBC Capital Markets cuts rating on Canadian oil producer Imperial Oil IMO.TO to "underperform" from "sector perform"

** Brokerage says IMO's shares have run ahead of fundamentals, and it sees stronger returns elsewhere

** "IMO's strong performance over several years has earned itself a premium valuation, however, at current levels we look upon its relative valuation as stretched", brokerage says

** Adds co's planned restructuring poses a risk, noting, "a reorganization...of this magnitude in Canada over the course of the next two years could impact the company's operating performance,"

** 1 of 17 brokerages rate the stock "buy", 6 "hold" and 10 "sell" or lower, median PT is $112 - data compiled by LSEG

** In 2025, IMO was up 31.9%

(Reporting by Varun Sahay in Bengaluru)

((Varun.sahay@thomsonreuters.com))