TSE:SU

Suncor Energy Inc (SU.TO)

90.70
+1.58 (1.77%)
as of Aug 13, 2026, 6:00:07 pm Market Open.
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Investor Insights
star iconAug 13, 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 praise for its remarkable corporate turnaround and strong performance under its current management, noted for streamlining operations and generating significant free cash flow. Despite recent challenges, including the stepping down of the CEO, experts see potential for substantial upside, with estimates of up to 40% growth in two years if the momentum continues. Many experts consider the stock's valuation as attractive, especially in comparison to peers like CNQ, suggesting that it remains a compelling option for income and growth as oil prices fluctuate. The company's long-life reserves and commitment to returning capital to shareholders through dividends and buybacks bolster its favorable standing in the energy sector, contributing to a generally positive outlook.

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Consensus
Positive
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Valuation
Fair Value
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Similar
CNQ
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.
PAST TOP PICK
(A Top Pick Apr 25/19, Down 51%) He does not think they will cut the dividend. He is holding on to it at this point.
DON'T BUY
You have to like their operating cost. It is fairly low. No one is going to put new money into capital investment in the oil sands and this will benefit SU-T. It is the best house in a bad neighbourhood. He is not rushing into that sector right now.
PAST TOP PICK
(A Top Pick Apr 11/19, Down 44%) He continues to hold it because they have a 30 year plus reserve index. The spot price of oil i actually above their costs. They also have downstream integration. The dividend is safe.
COMMENT

The composition of this ETF has become highly concentrated. Five names account for 78% of its value. CNQ and SU account for most it. Both of those names have rallied well compared to their peers as buyers in the US have been stepping in. However, their hedge books are naked to oil prices right now. He would prefer to own small cap names with good hedge books, if you select the right ones he thinks.

DON'T BUY
He had a sensitivity sheet that calculated SU is burning through about $4.1 billion at $30 oil. They would have adequate capacity if they were to cut the dividend -- not 100%, because they would be dropped from the dividend funds. He thinks he could do better in other names. Yield 8.3%
PARTIAL BUY
He thinks pipelines would be safer, although this price level could be a good entry level. This is the go to producer in the energy space. He has a buy recommendation with a $40 target. He would still wait for another couple of weeks to learn more about the impact of COVID-19. Will they cut back the yield? He is not sure. He would suggest buying half of your entry amount here.
DON'T BUY
Oil Companies. The war between Saudi Arabia and Russia may be a concerted effort to put marginal producers out of business. It is an unpredictable battle.
HOLD
Is the petro Canada station down the street going to be there for the foreseeable future? Of course. This stock is going back to $30 or $40 eventually but this is not the time to get into speculative names. There are going to be a lot of bankruptcies and this is the name that will buy them out at a huge discount.
STRONG BUY
Recommends it despite this horrible oil environment. They are diversified and financially strong. It will survive and one of the few oil names he strongly recommends. However, he isn't sure they should keep the dividend during this virus.
BUY
Back up the truck now? The stock and earnings held up very well into the Saudi oil shock. This is getting very cheap. It could drop to $16, but only briefly. The upside looks strong.
HOLD
Nobody knows what the Saudi price is doing and Putin is worrying about himself and trying to be in power for life. SU-T will be a survivor. It has a health dividend that is probably not at risk. The share buy-back program may be at risk. He would not worry about it.
BUY

He owns CNQ instead. These two are the ones you want to own with the volatility in the oil market. They both have the ability to manage through this and have a chance to buy a bunch of assets. The smaller caps are just fighting to live another day. Risk that oil can go lower.

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