Suncor Energy (TSE:SU) has seen its price target raised by the Royal Bank of Canada to C$70.00, reflecting a positive outlook on the company’s performance. The adjustment, made public on Friday morning, marks an increase from the previous target of C$67.00. This upgrade aligns with the bank’s current rating of “outperform” on Suncor’s stock, indicating a favorable assessment of its market potential.
Several other financial institutions have also recently updated their evaluations of Suncor Energy. For instance, on January 7, 2024, Raymond James Financial raised its target price from C$70.00 to C$75.00, maintaining an “outperform” rating. CIBC adjusted its target from C$65.00 to C$70.00 on November 27, 2023, while Gerdes Energy Research increased its price target from C$75.00 to C$78.00 on November 10, 2023. In contrast, National Bankshares slightly reduced its target from C$73.00 to C$72.00, still holding an “outperform” recommendation. UBS Group also raised its forecast from C$61.00 to C$65.00 on November 5, 2023.
Analyst ratings for Suncor Energy reflect a generally optimistic sentiment. One analyst has rated the stock as a “Strong Buy,” while five others have assigned a “Buy” rating, and four have issued a “Hold” rating. According to data from MarketBeat.com, the consensus rating for Suncor Energy is “Moderate Buy,” with an average price target set at C$67.62.
Recent Financial Performance
Suncor Energy recently released its quarterly earnings results on November 4, 2023, reporting an earnings per share (EPS) of C$1.48 for the period. The company showcased a return on equity of 18.10% and a net margin of 15.15%. Total revenue for the quarter reached C$12.55 billion, underscoring Suncor’s robust operational performance. Analysts predict that the company will achieve an EPS of approximately 4.42 for the current fiscal year.
In addition to its financial results, Suncor Energy announced a quarterly dividend of C$0.60, distributed to shareholders on December 24, 2023. This marks an increase from the prior dividend of C$0.57. The annualized dividend now stands at C$2.40, providing a yield of 3.7%. The company’s payout ratio is currently 53.15%, indicating a balanced approach to returning value to shareholders while supporting growth initiatives.
Insider Activity
Recent insider transactions at Suncor Energy have drawn attention. On November 17, 2023, insider Peter Douglas Zebedee sold 43,364 shares at an average price of C$62.53, totaling approximately C$2.71 million. Another insider, Kristopher Peter Smith, sold 112,600 shares on November 11, 2023, at an average price of C$61.74, amounting to around C$6.95 million. Following these transactions, Smith retains 48,482 shares valued at approximately C$2.99 million, reflecting a significant reduction in ownership of 69.90%. Over the past three months, insiders have sold 164,675 shares worth around C$10.21 million, with only 0.01% of the stock currently held by corporate insiders.
About Suncor Energy
Suncor Energy Inc. operates as an integrated energy company, focusing on oil sands development, production, and upgrading, alongside offshore oil and gas extraction. Its operations extend to petroleum refining in Canada and the United States, as well as the retail and wholesale distribution networks of PetroCanada. The firm is committed to advancing its petroleum resources while transitioning towards a low-emissions future through investments in renewable fuels, hydrogen, and power generation. Suncor also engages in energy trading activities, primarily focused on crude oil, natural gas, byproducts, refined products, and power.
As Suncor Energy continues to navigate a complex energy landscape, its recent upgrades in stock ratings and financial performance reflect confidence in its strategic direction and market positioning.
