Suncor Energy: Operational Improvements and Strategic Initiatives Drive Buy Rating

Analyst Randy Ollenberger from BMO Capital maintained a Buy rating on Suncor Energy (SU – Research Report) and keeping the price target at C$65.00.

Randy Ollenberger has given his Buy rating due to a combination of factors that highlight Suncor Energy’s recent operational improvements and strategic initiatives. The company has consistently outperformed expectations over the past six quarters, signaling a shift from its previous performance. Suncor is on track to achieve significant cost reductions, including a notable decrease in its breakeven price per barrel, ahead of its original schedule.
Furthermore, Suncor’s downstream operations are performing exceptionally well, with utilization rates exceeding 100% and successful project completions that enhance throughput capacity. The company’s in-situ development options and strategic consolidation moves, such as increasing its stake in Fort Hills, provide additional growth potential. These factors, combined with ongoing efficiency improvements and potential M&A opportunities, contribute to the positive outlook for Suncor’s stock.

According to TipRanks, Ollenberger is a 5-star analyst with an average return of 10.9% and a 54.97% success rate. Ollenberger covers the Energy sector, focusing on stocks such as Peyto Exploration & Dev, Imperial Oil, and Suncor Energy.

In another report released on May 26, UBS also maintained a Buy rating on the stock with a C$61.00 price target.