In a report released yesterday, Randy Ollenberger from BMO Capital maintained a Buy rating on Suncor Energy (SU – Research Report), with a price target of C$65.00.
Randy Ollenberger has given his Buy rating due to a combination of factors surrounding Suncor Energy’s recent performance. The company has consistently exceeded financial expectations, particularly in the third quarter of 2024, where it surpassed consensus estimates by approximately 25%. This impressive outperformance was largely driven by record-high refining volumes and utilization in the downstream segment, alongside notable achievements in upstream production and reduced operational costs.
Suncor’s ability to achieve its net debt target ahead of schedule further strengthened its financial position, reflecting prudent fiscal management and operational efficiency. The company’s strategic decision to allocate 100% of its free cash flow to shareholders indicates a strong commitment to enhancing shareholder value. Given these factors, along with the potential for a high yield return based on the current commodity price outlook, Ollenberger sees further upside potential for Suncor’s shares, justifying the Buy rating.
In another report released on November 1, Goldman Sachs also reiterated a Buy rating on the stock with a $45.00 price target.
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Suncor Energy (SU) Company Description:
Suncor Energy, Inc. is a Canada-based integrated energy company which is specialized in producing synthetic crude from oil sands. The company also engages in exploration, acquisition, development, production, and marketing of crude oil in Canada and internationally. It also markets and trades in natural gas, crude oil, byproducts, refined products, and power.