TSE:SU

Suncor Energy Inc (SU.TO)

86.85
-4.16 (4.57%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
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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
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.

COMMENT

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.

PAST TOP PICK
(A Top Pick Apr 11/19, Down 34%) You can enter it now during this pullback. Has a 32-year reserve life index. The future price of oil is what matters, and those prices are much higher than the spot price. Suncor will survive this oil shock. Russia and the Saudis will bury the hachet eventually.
COMMENT

Suncor is a good buy, but so is CNQ, he thinks. Both have yields of 5.6% today.

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