
TSE:SU
This summary was created by AI, based on 16 opinions in the last 12 months.
Suncor Energy Inc (SU) has garnered attention for its significant turnaround under the current management, which has streamlined operations and improved financial performance. Experts note that the company has strong prospects due to its profitable oilsands operations, which are expected to generate cash flow for many years, bolstering both income and growth potential. There is a prevailing optimism about its future, with predictions of substantial upside in stock value, even amidst concerns regarding recent CEO changes. However, there are suggestions to consolidate positions or reassess targets in light of fluctuating oil prices and market conditions, reflecting a cautious yet favorable view on the company's long-term trajectory.
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
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.