Zacks Research Upgrades Suncor Energy (NYSE:SU) to Strong-Buy

Key Points

• Zacks Research upgraded Suncor Energy to “strong buy” from “hold.” The broader analyst consensus is “buy,” with a consensus price target of $80.25 versus the stock’s reported $68.34 price.
• Suncor’s latest quarterly results exceeded expectations, with EPS of $2.33 versus the $2.14 consensus and revenue of $13.41 billion compared with estimates of $11.68 billion. Institutional investors own approximately 67.4% of the company.
• The company agreed to sell three Newfoundland and Labrador offshore interests for about C$1.2 billion upfront, potentially reaching C$1.5 billion, with proceeds expected to support share buybacks and focus investment on its oil-sands operations. Investors still face legal uncertainty from climate-related lawsuits being considered by the U.S. Supreme Court.

Suncor Energy (NYSE:SU - Get Free Report) TSE: SU was upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Monday, Zacks reports.

Several other brokerages have also recently issued reports on SU. Desjardins raised shares of Suncor Energy to a "moderate buy" rating in a research note on Thursday, July 16th. Scotiabank raised shares of Suncor Energy to a "strong-buy" rating in a report on Friday, June 26th. Wall Street Zen lowered shares of Suncor Energy from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 1st. Weiss Ratings raised shares of Suncor Energy from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, July 29th. Finally, Morgan Stanley set a $106.00 price objective on shares of Suncor Energy in a research report on Wednesday, August 19th. Two investment analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus target price of $80.25.

Suncor Energy Stock Down 0.6%

SU opened at $68.34 on Monday. Suncor Energy has a 52 week low of $37.76 and a 52 week high of $72.06. The business has a 50 day moving average price of $67.08 and a two-hundred day moving average price of $64.26. The company has a quick ratio of 1.08, a current ratio of 1.65 and a debt-to-equity ratio of 0.19. The company has a market cap of $79.94 billion, a PE ratio of 12.59, a P/E/G ratio of 0.50 and a beta of 0.36.

Suncor Energy (NYSE:SU - Get Free Report) TSE: SU last announced its earnings results on Tuesday, August 4th. The oil and gas producer reported $2.33 earnings per share for the quarter, beating the consensus estimate of $2.14 by $0.19. Suncor Energy had a return on equity of 20.05% and a net margin of 15.62%.The company had revenue of $13.41 billion for the quarter, compared to the consensus estimate of $11.68 billion. During the same period last year, the business posted $0.71 EPS. As a group, research analysts anticipate that Suncor Energy will post 7.39 EPS for the current year.

Institutional Investors Weigh In On Suncor Energy

A number of institutional investors and hedge funds have recently modified their holdings of the company. Moody National Bank Trust Division increased its stake in Suncor Energy by 8.7% in the 3rd quarter. Moody National Bank Trust Division now owns 5,806 shares of the oil and gas producer's stock valued at $394,000 after purchasing an additional 466 shares in the last quarter. Rosenberg Matthew Hamilton grew its stake in Suncor Energy by 23.3% in the 3rd quarter. Rosenberg Matthew Hamilton now owns 1,412 shares of the oil and gas producer's stock valued at $96,000 after acquiring an additional 267 shares during the last quarter. Versant Capital Management Inc grew its stake in Suncor Energy by 121.7% in the 3rd quarter. Versant Capital Management Inc now owns 1,093 shares of the oil and gas producer's stock valued at $74,000 after acquiring an additional 600 shares during the last quarter. QRG Capital Management Inc. increased its holdings in Suncor Energy by 17.1% during the 2nd quarter. QRG Capital Management Inc. now owns 8,470 shares of the oil and gas producer's stock valued at $455,000 after acquiring an additional 1,235 shares in the last quarter. Finally, Wellington Altus USA Inc. increased its holdings in Suncor Energy by 26.5% during the 2nd quarter. Wellington Altus USA Inc. now owns 4,373 shares of the oil and gas producer's stock valued at $235,000 after acquiring an additional 915 shares in the last quarter. Institutional investors and hedge funds own 67.37% of the company's stock.

Key Stories Impacting Suncor Energy

Here are the key news stories impacting Suncor Energy this week:

• Positive Sentiment: Suncor agreed to sell its interests in three Newfoundland and Labrador offshore projects to Ithaca Energy for approximately C$1.2 billion in upfront cash, with the potential value reportedly reaching as much as C$1.5 billion. The transaction should simplify Suncor’s portfolio, reduce future offshore obligations and concentrate investment on its oil-sands operations. Reuters offshore asset sale article
• Positive Sentiment: The company said proceeds from the sale will support increased share buybacks, potentially enhancing per-share returns and signaling management’s confidence in the underlying business. Analysts also view the deal as supportive of Suncor’s oil-sands growth strategy and shareholder distributions. Suncor offshore sale and buybacks article
• Neutral Sentiment: Valuation coverage is asking whether Suncor is undervalued, with attention on earnings estimates, estimate revisions, value, growth and momentum. The stock’s prior quarterly results exceeded consensus expectations, providing a fundamental backdrop for the valuation discussion. Zacks Suncor valuation article
• Negative Sentiment: The U.S. Supreme Court is weighing whether climate-related lawsuits against Suncor and ExxonMobil can proceed in state courts or should be moved to federal court. A ruling is expected by June 2027 and could affect nearly 60 similar lawsuits, leaving investors exposed to potentially significant long-term legal and financial uncertainty. Zacks Supreme Court climate case article

About Suncor Energy

Suncor Energy Inc is an integrated energy company headquartered in Calgary, Alberta. Its operations span the development and production of crude oil from Canada's oil sands, offshore petroleum production, refining, and the marketing and distribution of petroleum products.

The company produces synthetic crude oil, bitumen and conventional crude oil, which are processed through its refining operations into fuels and other refined products. Suncor markets fuel and convenience products through the Petro-Canada retail network and supplies commercial, wholesale and industrial customers.

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