
TSE:SU
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.
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.
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.
Energy stocks? Right now stick to the large, liquid energy stocks. There is growing concern of counter-party credit exposure within the mid-stream and pipeline space. He recommends ENB-T and TRP-T for pipelines and SU-T and CNQ-T for producers, if you want to own any energy stocks. SU-T yield is 7.2%, while CNQ-T is 8.4%. CNQ-T is probably still showing positive cash flow, even at these oil price levels. You may still lose money, but it will be much less than a smaller player.