Opinions Eric Nuttall
Suncor Energy IncSU.TODON'T BUYJan 20, 2015
Eric NuttallStock price when the opinion was issued
As of Jun 05, 2026. Market Open.
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Bought more this morning, now approaching maximum weight. Don't look at where it's been; look at where you think it's going. Thinks it'll be a go-to name (along with CVE) over the XOM's and CVX's of the world.
Sees 30-40% upside from here at $80 oil. CEO is a stud. International $$ is underweight energy, and they'll come to Canada and buy this name.
Eric NuttallLikes the SU story at 27% earnings growth, trading at 12x PE. Everyone's metrics are based on $72 oil, and just look where oil's at. He loves this stock, but his call is that oil will probably come down (he could be wrong).
Valuation still isn't bad. Profile for Canadian oil vs. international oil is really good, given our nation-building projects and support. Don't sell, even if everything else goes up. Good insurance policy, and still a really good long-term stock.
Greg NewmanOverall, SU is on the right trajectory and run efficiently. CNQ does have the nat gas component, so if that price appreciates we may see a bump in the stock price.
Consider investing in both. Both provide stable dividends, backed by the price of oil. Both were doing quite well even before the Iran conflict, which has just added to the performance. Remember that diversification is key.
Tremendous respect for the company and the CEO. Fairly valued right now, though multiple is a bit less than CNQ. Barring some geopolitical event, such as Ukraine striking actual production facility in Russia, he's challenged to see oil spiking over the short term. No reason to own right now.
See his Top Picks for a name that can make his clients more money.
He likes the Oil Sands. As Canada builds more infrastructure to tap into our energy supplies, value from SU will be realized. These are long-life reserves, well-managed with long operating costs. They make a lot of money and pay a lot of dividends. He has no opinion on whether SU will buy Baytex, but consolidation happens in Canadian energy.
Very well run. His go-to name (along with CNQ) for dividends and energy exposure. Right now, he owns CNQ. Valuations between the two are comparable. CNQ has more flexible capital allocation choices.
New CEO has done a wonderful job making it more efficient. Chris is a cashflow-focused investor. Some of these energy names just gush cash, and they're all keen to return capital to shareholders. Oil price is down, so good time to buy. He prefers CNQ, but SU is a reasonable choice for a dividend-seeking investor.
Safety incidents. New management team has improved operations, and stock's done well. Production is aging, so they're going to have to secure new. Older assets. Yield is ~4%.
Though she doesn't trade, she's going to recommend a switch. Not on short-term valuation metrics, but for a longer-term energy play. And that's CNQ.
Very impressive turnaround under new management team. They're about 1.5 years through their 3-year plan, and ahead of schedule. Exceeded every target set. Deep cultural change is important to highlight. Breakeven (including dividend) has moved into the range of mid-$40 US a barrel.
Returning 100% of FCF to shareholders via dividends and buybacks. Well-integrated, solid model insulates it from low oil price.
Dennis da Silva
There is nothing wrong with this company. In all of the large caps, he would say this is the most defensive given their lack of leverage. Looking at their performance relative to oil over the last couple of months, oil is down 42% and this company is only down 7%. People who need or want some energy component in their portfolio, typically buy the large caps, but that is creating a situation of a large disconnect between the stock price and oil price. Because of this you have 2 years to wait. He would rather buy a company that is a little more out of favour with as good of a balance sheet and maybe a better hedging position. There are much better names to buy.