TSE:SU

Suncor Energy Inc (SU.TO)

95.67
-1.34 (1.38%)
as of Sep 25, 2026, 4:34:10 pm Market Open.
1173 watching
0
COMMENT
CNQ vs SU Both have excellent management teams and are generating free cash flow. Both pay dividends. CNQ-T does not have refining assets. Both are the go to names for investors out of Canada. On a value basis, neither are great value right now. There are more exciting names to own.
TOP PICK
It generates $10 billion in cash flow -- $6 billion into developing the resources, the rest is free cash flow. Yield 3.91% (Analysts’ price target is $54.50)
BUY
Likes it. Very well run. Thinks energy prices are sustainable at these levels. Nice consistent long-term cash flows. Attractive long-term investment. But realize that it's going to go up and down with the oil/gas quote. Nice dividend, decent valuations.
PAST TOP PICK
(A Top Pick Feb 08/19, Up 1%) Played it for the seasonal trade. Came up to the 200-day moving average twice, and rolled over. So he got out. January - May is the optimal time to own. Might have a secondary run in July, August, September.
BUY
Good balance sheet. Trading at decent valuation. Growth of 12%. They beat on EPS. He likes it.
HOLD
Will rail benefit? He thinks rail and the new Alberta government will benefit them. Pipelines are safer, but oil needs to move. SU-T is their primarily holding in the energy space. A fully integrated company that benefits from production and refining. Yield 3.5%.
DON'T BUY
Defensive? Suncor and CNRL are the predominate weights in the Energy Index. Money has been hiding here and inflating valuations. As Suncor is integrated it is defensive, but we are into year 5 of a wicked bear market for energy stocks. New money will not likely go here, it would be attracted to companies at a fraction of the valuation. He would not own it.
TOP PICK
Integrateds have done very well. They've grown their dividend nicely. They have diversified operations, but insulated from the WCS differential. Fine in the long term. Good valuation. (Analysts’ price target is $54.95)
HOLD
This company has its good and its bad. For exposure in oil, this is a defensive holding. It won't correlate to outright oil prices exactly, but it will be more stable if oil prices consolidate. He likes their integrated nature. It you feel oil prices are going higher, you may want to own a producer.
WEAK BUY
$60.37 is his target price. You can enter it now. It will benefit from rising oil prices. It's a low-risk trade.
COMMENT
SU vs. CNQ Suncor has higher dividend. Both big in oil sands. Both generate free cash flow. Suncor's said it will raise dividend and buy back stock. CNQ is also buying back. Suncor performance is much better. Until we get through October federally, and egress gets resolved, foreigners will stay away from Canada.
BUY
He thinks they will succeed in getting their oil to markets at a world price. He can't say how they will, but SU has accomplished this in the past.
TOP PICK
Pays a growing dividend of 3.5% that has been growing steadily. Ft. Hills and Hebron, 2 big growth projects, are now online. They have downstream integration which insulates them from the commidity differentials that other oil players face. (Analysts’ price target is $54.48)
BUY
CNQ vs. Suncor Owns and prefers Suncor because of its downstream integration. CNQ though looks interesting now as it flirts with its 200-day moving average. Valuation is low at P/B and pays a 3.9% yield, which is high in this sector. The stock is discounted for CNQ. The major risk is that it's a pure play on WCS. Otherwise, a great company.
BUY
He does not cover it. He tries to cover names that don’t get a lot of coverage and are quite attractive. The big thing about it is that it is a cash flow machine. It has been raising its dividend and if it breaks $40 it is a bargain. This and CNQ-T are go-to names for foreign investors. (Analysts’ price target is $54.00)
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