In a report released yesterday, Lloyd Byrne from Jefferies maintained a Hold rating on Suncor Energy (SU – Research Report), with a price target of C$53.00.
Lloyd Byrne has given his Hold rating due to a combination of factors surrounding Suncor Energy’s recent performance and future prospects. Suncor’s first-quarter cash flow per share (CFPS) outperformed expectations, which reflects positively on their operational capabilities. The company achieved a slight beat in upstream production and a more substantial beat in refining throughput. Despite these positive indicators, Byrne’s rating suggests a cautious optimism, as investors are encouraged to look at the sustainability of these results, the company’s progress towards operational cost targets, and the potential for growth through upstream options.
The Hold rating also takes into account the company’s financial standing, where Suncor generated free cash flow that exceeded both Jefferies’ and consensus estimates. This was largely attributed to robust cash generation coupled with lower than anticipated capital expenditures. However, with no changes to the 2024 guidance and with a key Business Update on the horizon, Byrne’s analysis implies that while the company is currently on solid ground, there are significant factors and events that could influence its future performance. Therefore, a Hold rating is appropriate until these aspects are further clarified and their impact on the company’s trajectory is better understood.
In another report released on April 23, Desjardins also maintained a Hold rating on the stock with a C$54.00 price target.
Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SU in relation to earlier this year.
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Suncor Energy (SU) Company Description:
Suncor Energy, Inc. is a Canada-based integrated energy company which is specialized in producing synthetic crude from oil sands. The company also engages in exploration, acquisition, development, production, and marketing of crude oil in Canada and internationally. It also markets and trades in natural gas, crude oil, byproducts, refined products, and power.
