
TSE:SU
This summary was created by AI, based on 17 opinions in the last 12 months.
Suncor Energy Inc. has garnered positive attention from various analysts who appreciate its solid turnaround under new management and its strong position in the Canadian oil sands sector. Experts highlight the company's potential for significant free cash flow generation over the coming decades due to its long-life reserves and efficient operations. While some analysts express caution regarding short-term oil price fluctuations, the general sentiment leans towards holding the stock for its long-term growth prospects. The company is seen as a stable investment due to its robust dividend policy and ongoing share buybacks. However, comparisons with other Canadian energy firms, particularly CNQ, indicate that while Suncor remains a viable option, it may not necessarily be the top pick for all investors.
Cut dividend. Fort Hills has been delayed. Cut operational expenses. About 1B in free cashflow. Still trading cheap, at 4x cashflow. He owns CNQ in the space, for better risk/return. He'd be a buyer instead of a seller. Possibility of increased dividend to entice investors.
Buy on current weakness? He owns CNQ instead. His strategy is to own the larger-cap oil companies. SU will spend some money in capex and likely increase that, buyback shares and raise their dividend. All large oil companies around the world are doing this. Of course, rising oil prices will help. These companies are in better shape than before. Both SU and CNQ make acquisitions at the right time.
Execution has always been an issue for them. The streets are worried about their ability so this is why it trades at a discount. Stock is inexpensive at 3.6x cashflow with a 19% free cashflow yield. If you want to stick in the large cap realm, he prefers Cenovus. Could trade at a discount for some time.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Could buy here if you are okay with the stock moving with the commodity prices. The biggest in Canada. Pays a good dividend. Would recommend a small allocation in the energy space overall. Unlock Premium - Try 5i Free