
TSE:SU
This summary was created by AI, based on 16 opinions in the last 12 months.
Suncor Energy Inc (SU) has garnered positive feedback from various experts, highlighting its strong corporate turnaround and potential for long-term growth, particularly with the oil sands as a major asset. Analysts noted that Suncor has shown impressive earnings growth, trading at attractive valuations relative to its peers, despite ongoing fluctuations in oil prices. There is a notable consensus on the company's improved management under new leadership and operational efficiency, resulting in a focus on returning capital to shareholders through dividends and buybacks. Experts generally view Suncor as a solid investment within the Canadian energy sector, especially as the company benefits from upcoming infrastructure developments aimed to enhance its energy potential. While some analysts express caution over potential market volatility and geopolitical concerns, many see considerable upside potential for the stock moving forward.
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