TSE:SU

Suncor Energy Inc (SU.TO)

94.67
-1.32 (1.38%)
as of Sep 2, 2026, 8:00:00 pm Market Open.
1171 watching
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Investor Insights
star iconSep 2, 2026, 12:00 am

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.

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Consensus
Positive
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Valuation
Fair Value
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Similar
CNQ, CNQ
PAST TOP PICK
(A Top Pick Aug 23/19, Down 41%) Doesn't love energy, but if he had to buy, this would be one. Better spots to put money now than in energy. Perfectly good company, but the industry is in the penalty box. Well run. If you're down, don't rush out to sell. It will inch its way back.
COMMENT

He would compare it with Canadian Natural Resources which has a greater chance of upside. Suncor wasn't beaten down as much as CNR. They have good free cash flow and executes well. Energy stocks in general are still at risk since institutional money is avoiding the sector.

WAIT

SU cut their dividend. It is a bellwether energy stock. Refining margins are tough which hurts SU. He owns CNQ instead; it didn't cut its dividend. SU stock is okay now with oil prices in the low-$40s, but could weaked in the fall. He's not adding his energy exposure. The bigger picture is: how much oil do you want in your portfolio. He owns CNQ and recommends that in the mid-$20s. Oil offers decent risk/reward given base demand, but wait till the fall to see if demand declines due to a COVID uptick. Oil depends on whether shale oil receives capital support and shale decline has been the game-changer in the last few months. Overall, SU is fine, but if you're switching into CNQ, now's the time to do it.

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.

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