
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. 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
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.