Suncor Energy Inc (SU.TO) Buy, Sell or Hold

Suncor Energy Inc (SU.TO)

97.01

+1.25 (1.31%)

as of Sep 24, 2026, 8:00:00 pm Market Open.

1173 watching

TOP PICK

He bought in October. It was too excessively low. The market always liked its refining assets and this gave it a premium. There is room for the stock to move to $30 in the new year as the economy recovers. (Analysts’ price target is $25.62)

TOP PICK

One of the beneficiaries of the terrible energy market. It is well managed and capitalized. The largest integrated energy companies in Canada. Focused on expense management. It is planning on increasing cashflow in the next couple years. Yield is around 4%. (Analysts’ price target is $25.41)

BUY

The oil company people love to hate. They've had some operational issues, but not to deserve this sentiment. Last week, he doubled his position, selling at bargain rates. Their exposure to gas stations and refineries hurt during the spring lockdown, but that's now done. They're fixing their operational issues. He likes that they're running the syncrude project. Lots of upside here. The market has been way too hard on SU. There could be some tax-selling, so buy then.

COMMENT

CNQ would be better for dividend sustainability. They have less maintenance requirements on their properties, a better run company. There is better inside ownership. He owns both. At $60 oil, CNQ will have 18% free cashflow yield. Suncor has less leverage due to refining exposure.

DON'T BUY

Doesn't hold producers, as oil price not favourable, especially in western Canada. SU doesn't qualify as an income stock, as cashflow of producers is predicated on the commodity price, which can be difficulty to forecast and may trend down. Prefers, and holds, ENB instead.

PAST TOP PICK

(A Top Pick Nov 13/19, Down 60%) Still likes the company. They've controlled what they can such as cutting the dividend. Still financially strong, generates free cashflow at $35 and above, payout ratio is manageable. Stampede into ESG investing has impacted share price. Oil will come back when the economy does. Good entry point here.

BUY

He owns CNQ-T instead. It has been a very difficult period for all oil companies. You are seeing bigger and bigger acquisitions happening in the sector. They have done well in buying up businesses that will do well within their company. Their oil sands productions are near normal global emission standards. There is a perception that Canadian oil is really very dirty.

DON'T BUY

Shorting this has been a good play. There have been operational challenges and there were mine depletions. ESG forces are also a headwind. A well-owned company still being the largest in Canada. If oil prices inflect soon, Suncor will be a beneficiary.

PARTIAL BUY

Oil companies are moving towards renewables. SU is underappreciated given its assets. Operating costs for the oil industry are around $15/barrel, so they can still make money even at these oil prices. There are 20-30 years of oil reserves. SU is a good low-cost play for the long term that he's comfortable to hold for the long term.

DON'T BUY

No matter how great the managers are, commodity companies are at the mercy of others for the pricing of their commodity. Maybe oil bobbles up to $55, then there's a wide wash-out and plunges to $10-15. Then, at some point, commodities will do very, very well in 3+ years. It's going to take some time to work through this oil trough, but it will bounce back.

DON'T BUY

The company is probably still profitable. It did cut the dividend earlier this year. The share price has really been beaten down. If things continue to improve, there may be some major upside, but he would prefer higher quality businesses.

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TOP PICK

Stockchase Research Editor: Michael O'Reilly We have stayed on the sidelines regarding Canadian energy companies, but the time has come to select SU as a Top Pick. The stock has come under pressure lately from a potential lawsuit regarding a mine outage following a fire in August. We believe the potential litigation is unfounded and opportunistic. The worst of the impact from the pandemic is behind it now. When oil prices recover further heading into normal seasonal winter demand increases, the cashflow outlook will also be revised up. We would trade this with stop-loss at $13.50. Yield 5.23% (Analysts’ price target is $30.32)

HOLD

The energy space in Canada is seen quite negatively. You will probably not see an immediate big decline in fossil fuels. Their projects are large and could generate some positive cash flow. The push for renewables is stronger. It is the best in a bad lot.

COMMENT

It's hard to compare AQN to SU. He owns CNR and not SU. He is underweight in gas. He does own AQN as well as BIP. Energy pays a good dividend and in a low interest environment, they can do well.

DON'T BUY

It's in the doghouse and it has been an under-performer. The funds have been flowing towards CNQ. We're at the bottom of the cycle, so there are better companies to buy.

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Suncor Energy Inc (SU.TO)