Analyst Lloyd Byrne from Jefferies maintained a Hold rating on Suncor Energy (SU – Research Report) and keeping the price target at C$58.00.
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Lloyd Byrne’s rating is based on several factors that highlight both positive and moderate aspects of Suncor Energy’s performance. The company exceeded expectations in its fourth-quarter cash flow per share, which was attributed to its strong operational performance. This positive outcome was already anticipated, as it was pre-released. Additionally, Suncor has shown progress towards its Investor Day targets, particularly in terms of year-over-year free cash flow growth and a reduction in break-even costs.
Despite these achievements, the Hold rating reflects a cautious outlook influenced by investor expectations that have risen alongside these results. The focus on areas such as tariffs, investor targets, capital efficiency, and future guidance suggests that while progress is being made, there are still key areas of uncertainty. These elements, along with considerations on mergers and acquisitions, contribute to the decision to maintain a Hold stance, indicating that while Suncor is performing well, further developments are needed to justify a more bullish recommendation.
In another report released on January 22, Morgan Stanley also maintained a Hold rating on the stock with a C$61.00 price target.