
TSE:SU
This summary was created by AI, based on 16 opinions in the last 12 months.
Suncor Energy Inc. (SU) has garnered a mix of positive insights and considerations from experts. Many commend the company's impressive turnaround under new management and note its strong potential due to the long-life reserves of oil sands, combined with significant free cash flow generation. While some analysts highlight its solid operational efficiency and attractive dividend returns, others raise concerns about the potential volatility tied to fluctuating oil prices and the challenges facing the broader Canadian energy sector. Despite these concerns, there is a prevailing sentiment that SU remains a good long-term investment, particularly given the backdrop of increasing demand for Canadian energy and ongoing infrastructure development. The stock is viewed as a core holding in the energy space, with substantial upside potential amid reasonable valuations relative to peers.
Well-run, have been cutting costs. He owns no energy, and he prefers energy infrastructure like Pembina. Suncor, though, is a good operator, but he's skeptical about the medium-term outlook on oil, because there are countries that are eager to turn on the taps which will add to world supply. For SU, buy on any pullback. The dividend is safe, because they are generating free cash flow due to rising oil prices.
Have not owned large caps until recently and this strategy has helped him outperform the index. Added Cenovus and CNQ recently. Has had operational issues, deaths of workers, and has had problems with ESG. Committed to net zero in the next decades. Canadian oil will increasingly be the highest rated in the world in regards to ESG. Would prefer other names in the large cap names.
Attractively valued, trading at around 12% free cashflow yield at $60 oil. Would go up to 17% at $70 oil. Big underperformance relative to CNQ. Good upside, even up to 50%. More than that at $70 oil. Sold to buy small cap oil companies. Preference for other names.
Has lagged CNQ and other companies due to them cutting dividends. Likes it for the long reserve life of lower-cost oil sands that is run well. The downstream integration is very good. The financial strength of the company makes it better than mid-sized or smaller producers.
If oil is going to do better then this one is going to do better. The oil space in Canada is starting to heat up. You have demand coming back and some of the Canadian egress issues are no longer a factor going forward. There are a lot of positives going forward in the space. CNQ-T is also a very solid holding today.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company is integrated so there is less torque to oil prices than pure producers. However, the stock is up 38% in 2021. Debt is being reduced, last quarter results were strong and the outlook is good. Has potential and trades at a 10x earnings valuation. Unlock Premium - Try 5i Free