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On Monday, RBC Capital Markets sustained their positive outlook on Suncor Energy (NYSE:SU:CN) (NYSE: SU) shares, maintaining an Outperform rating with a steady price target of Cdn$65.00. The firm’s analysts highlighted Suncor’s strong performance and comprehensive integration from upstream to downstream operations as key factors underpinning their favorable view. According to InvestingPro analysis, Suncor is currently trading near its 52-week low and appears undervalued, with a "GREAT" overall financial health score of 3.14 out of 5.
The analysts at RBC Capital Markets underscored the company’s effective execution, robust cash flow generation, and solid financials as reasons for their continued endorsement. They noted, "Our bullish stance towards Suncor reflects its impressive execution, physical upstream-downstream integration, free cash flow generation, solid balance sheet and handsome shareholder returns." Supporting this view, InvestingPro data shows Suncor has maintained dividend payments for 33 consecutive years, currently offering a 4.3% yield, with an impressive EBITDA of $11.37 billion in the last twelve months.
Suncor Energy’s position as a leading integrated energy company in Canada was also emphasized, with RBC Capital Markets reaffirming their one-year price target of $65 per share. The analysts’ confidence in the company is further reflected by Suncor’s inclusion on their Global Energy Best Ideas list, signifying a top pick within the sector.
The affirmation of the Outperform rating and the price target comes as Suncor Energy continues to demonstrate strong operational capabilities and financial discipline. The company’s integrated model, which spans the full value chain from oil extraction to refining and marketing, has positioned it to capitalize on efficiencies and market opportunities.
RBC Capital Markets’ reiteration of the Outperform rating serves as a sign of their belief in Suncor Energy’s potential for sustained performance and shareholder value creation. The company’s stock continues to be closely watched by investors seeking exposure to the integrated energy sector.
In other recent news, Suncor Energy announced a quarterly dividend of $0.57 per share, scheduled for distribution on March 25, 2025, to shareholders recorded by March 4, 2025. This decision reflects the company’s ongoing financial strategies and commitment to returning value to its shareholders. Additionally, Suncor Energy achieved record production levels in the fourth quarter of 2024 and throughout the year, with significant output from its Firebag and Fort Hills operations. The company’s downstream operations also reached record throughput, marking a strong operational performance. BMO Capital Markets maintained its Outperform rating for Suncor Energy, citing the company’s exceptional performance and operational improvements in 2024. The analysts at BMO noted Suncor’s increased reliability and production growth, which contributed to their positive outlook. They believe Suncor’s achievements could lead to an expansion of its valuation multiple in comparison to industry peers. These developments highlight Suncor’s strategic efforts and operational successes in the energy sector.
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