TSE:SU

Suncor Energy Inc (SU.TO)

86.85
-4.16 (4.57%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
1173 watching
0
Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 17 opinions in the last 12 months.

Suncor Energy Inc. has garnered positive attention from various analysts who appreciate its solid turnaround under new management and its strong position in the Canadian oil sands sector. Experts highlight the company's potential for significant free cash flow generation over the coming decades due to its long-life reserves and efficient operations. While some analysts express caution regarding short-term oil price fluctuations, the general sentiment leans towards holding the stock for its long-term growth prospects. The company is seen as a stable investment due to its robust dividend policy and ongoing share buybacks. However, comparisons with other Canadian energy firms, particularly CNQ, indicate that while Suncor remains a viable option, it may not necessarily be the top pick for all investors.

consensus icon
Consensus
Hold
valuation icon
Valuation
Fair Value
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Similar
CNQ
BUY
He was zero energy for about 3 years. He now owns only Suncor. Impacted by price, but they're integrated. They make money in almost every situation. Free cash flow will be much higher in subsequent years with higher oil. Cut the dividend to be prudent. Good dividend yield. Probably a $30 stock a year from now.
DON'T BUY
These companies are un-investable. The winds have changed in term of environment and it will be difficult to grow value. Ethically, there are many people who are abandoning energy by principle.
DON'T BUY
The entire oil sector will continue to struggle. The only reason oil prices have rebounded is that Russia and OPEC agreed to cut production a bit. His view on the energy sector is that they no longer own anything in this sector. Cutting dividends or eliminated dividends are likely.
DON'T BUY
It was his top pick back in March. He wouldn't be adding more right now. As we get into the seasonality of the flu and the second wave, there will probably be a setback. It diversifies you with exploration and retail sales. However, we have passed the best before date for the energy sector and it will probably underperform.
BUY
Which company in the oils sands would he like to buy? All energy companies are going to have a poor year, this year. As the recovery takes hold, demand for energy should increase. SU-T would be one of the better places to be. It is well financed and has a good balance sheet. It is also quite diverse, covering up stream to down stream operations. It has the capability to pay a dividend throughout this crisis.
COMMENT

SU vs CPG? During the recovery of energy prices, SU has seen its balance sheet improve dramatically. CPG has worked hard and have improved their debt levels. At current oil price levels, both look okay. If he was putting money into energy, he would prefer going with the heavy weight -- SU.

BUY
It has not run quite as much as some of the others. It depends on what WTI does. If it continues to rise, then it will be quite positive. Eventually they could re-instate their dividend.
COMMENT
Did the Saudis buy into Suncor and CNQ? He believes this is true, that a large Canadian pension fund sold these stocks to the Saudis. Can't comment on the stocks themselves; anything oil and gas been difficult. This industry can't catch a break. Oil prices can't trade at these prices for long, and a second wave will hurt these stocks more.
DON'T BUY
Dividend safe? They cut their dividend about a week ago. He is not as bullish on SU as it is the largest constituent of the energy index. This means anyone who has been hiding has probably already bought this, leaving less upside opportunity. It has a poorer cost base compared to its peers. They also have a large capex obligation in about two years. He thinks this will hold them back from being able to acquire some good low valued companies. There are better names out there.
BUY

CSH.UN-T vs. SU-T. They seem to have nothing relating to one another. Both have had a difficult time. There is a logical answer to this. Falling interest rates are the single biggest supporter of real estate values. We are at or near generational lows in interest rates. If you saw reflation then commodity assets would start to participate. He would own SU-T or CNQ-T if he were to own something in energy. He owns SU-T. He would sell CHR.UN-T in order to buy SU-T.

BUY ON WEAKNESS
With the US opening up (far too early in his opinion), he thinks we are in a bull market. Wait for a pullback from here. He does hold it, but wants to wait to see how the opening in the US goes. You should have an idea by September.
DON'T BUY

One-year outlook Doesn't follow it. Doesn't like commodities, because these companies don't set their product's price. It doesn't matter how good management is. Also, Canada lacks enough pipelines. He prefers pipelines like Enbridge over the oil producers. He has no idea where oil is going.

COMMENT
The yield is nearly 8%. We are seeing complete demand destruction. You may be able to trading in and out of it.
COMMENT
He would prefer to avoid this very cyclical sector right now. There is so much uncertainty and he does not have a lot of conviction around the Canadian energy producers. He would prefer to hold more infrastructure based companies like pipelines or mid-streamers. He thinks SU has staying power, but he is not sure the dividend might not get cut.
BUY
The stock is cheap. The problem is that the earnings forecast of -53 cents does not cover the dividend. It has a pretty strong balance sheet so he expects they can maintain all or some of that dividend. He suspects they could cut back on the dividend and it would not crater the stock. He thinks they should take the dividend down a bit so the market will not be so worried about it.
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