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
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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.

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Consensus
Hold
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Valuation
Fair Value
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Similar
CNQ
HOLD

Suncor will be a survivor of this energy down turn, but only wants to own one oil sands producer. He prefers CNQ. Suncor has benefited from their refinery assets, but that value uplift is pretty much played out.

HOLD
Rose 21% in the past year and pays a 5% dividend. It's the biggest and best oil company in Canada, though western Canadian oil is not a great place to be now. If you own it, hang on. They've been raising their payouts.
BUY ON WEAKNESS
The sector is getting battered. Focus on where you're going to be 12 months from now. Likely to see OPEC cut production. Demand in China has come back. Understand your holdings. A long-term investment that's under pressure right now. Companies like Suncor will get through this and still be able to pay their dividend. In a year or two, cuts in US production will cause a shortage in the market. Pick away at it.
PAST TOP PICK
(A Top Pick Feb 25/19, Down 6%) Don't get greedy and wait for more carnage in the oil space, but start nibbling. He sees a rebound in the price of crude in Q2 and the summer, actually. He may add to his position in coming weeks.
BUY

Suncor vs. Pembina Investor sentiment for oil is very weak, but Suncor is among the better performers in the last decade because their Oil Sands assets have such a long life that they don't have to keep investing money each year to maintain that production. Ultimately, Canada needs to see takeaway capacity to improve. He owns Pembina which is not as directly effected by the oil price. Suncor is an oil play; Pembina is an income play. Either one is fine.

DON'T BUY
A huge integrated oil company with production in the oil sands. Not currently held in his portfolio. The dividend is secure with a payout ratio of only 24%. The company is free cash flow positive. Earnings are expected to grow 5%. Overall, he has better candidates for yield with better growth potential. Yield 4.3%
BUY ON WEAKNESS

Issue for the oil industry is that they have to continue to explore, pay their large dividends, and decarbonize themselves. Great company. Bigger issue is how they become less carbon intensive. If they don't, they'll be starved for capital. Suncor's making an effort in these areas. You can hold it for the dividend. He owns CNQ instead.

COMMENT
Does it matter which party wins the US election to benefit the Oil Sands? He owns no oil stocks, but he thinks Suncor is the best of the bunch. They have integrated downstream and retail. Oil is a sunset industry. The world is against oil. He thinks the TransMountain will get built, but he still wouldn't own oil.
TOP PICK
It is the largest integrated oil company in Canada and the largest operator in the oil sands with its 31 year life expectancy. They have been able to grow their dividend meaningfully. (Analysts’ price target is $50.01)
BUY
Oil is a difficult space, but SU is building a base around $40. Strategy: buy the strongest stock in a struggling sector, which is SU. SU has the balance sheet to pick up cheap assets.
BUY ON WEAKNESS

oil Oil is tricky. It's a broken market that may or may not be coming back. Some have returned to gold too early. Over the decades, oil has risen and fallen largely due to spin (i.e. Peak Oil). He picks up a little oil when the stocks get cheap. Oil is a messy space. Of the juniors, WCP is his favourite. SU-T is the senior one he likes. But he really likes Advantage (but they deal in natural gas, not oil).

HOLD
The energy space is really tough. She likes things that are in management's control, which it is not here. There is growing interest in the energy space which has been left for dead. It will trade up with the whole group. They can grow cash flow without having the have the commodity grow and that is why she holds it.
TOP PICK
It does not hurt to have a major integrated player. There will be some noise going forward as they have had some unplanned outages. Their production forecasts are a little lower than analysts expected and their capex requirements were a bit higher. A solid company that generates significant free cash flow -- they hope to increase that by $2 billion. The most broadly owned energy stock in Canada. Yield 3.8% (Analysts’ price target is $49.64)
BUY

He owns CNQ that and SU are the top two large energy companies. SU continues to buyback shares and raise their dividend. They've made astute acquisitions. SU is also increasing cash flow. But they're under pressure from climate change. SU will continue to cut costs, increase cash flow and raise their dividend. A great company and well-run.

COMMENT
CNQ-T vs. SU-T. He thinks we are at the point where we have peak demand for carbon-based energy. By 2025 every car manufacturer will at least have a hybrid. There will always be at last a little demand for carbon-based energy. Right now we are generating more energy from solar than from coal, so we are moving in the right direction. He is indifferent to the two stocks.
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