Suncor Energy Inc: Stock Forecast & Analysis

Analyst Coverage Update

RBC Capital Markets (Analyst Rank#3) issued a research report and adjusted its 12 month target price downward for Suncor Energy from CAD 67 to CAD 64. This revision reflects concerns about Suncor’s balance sheet liquidity, particularly as the company faces the ongoing challenge of addressing mine depletion issues. RBC’s new target price indicates a more cautious outlook on Suncor, highlighting potential challenges that could impact the company’s financial stability and future growth. Investors should take note of these concerns, as they could influence the company’s performance in the near term.

Analyst Consensus

Despite the adjustment from RBC, the overall analyst consensus on Suncor Energy remains positive. Based on forecasts from 13 analysts, the average target price for Suncor is CAD 59.48 over the next 12 months. This target is above the current stock price of CAD 49.92, suggesting an expected upside potential of about 19%. Analysts generally hold a Buy rating on Suncor Energy, reflecting optimism about the company’s prospects. This positive outlook suggests that, despite recent adjustments, the long-term potential for Suncor remains strong.

Stock Performance

• Past Week: -1.56%
• Past Month: -11.76%
• Past Year: +5.18%

Suncor Energy’s stock has seen mixed performance recently. Over the past week, the stock has experienced a slight decline of 1.56%. The decline over the past month has been more significant, at 11.76%, indicating that recent challenges or broader market conditions have pressured the stock. However, looking at the past year, Suncor has shown resilience with a positive performance of 5.18%, signaling that the company has managed to achieve growth despite recent setbacks.

Stock Target Advisor Analysis

Stock Target Advisor’s analysis of Suncor Energy is Slightly Bullish, based on 9 positive signals and 6 negative signals. This mixed outlook indicates a generally favorable view of the stock. Investors should consider these signals when evaluating the stock’s potential, recognizing that while the overall sentiment is positive, there are factors that could pose risks.

Impact & Outlook

Suncor Energy Inc. is currently trading at CAD 49.92, which is below the average analyst target price of CAD 59.48. This suggests potential upside for investors if the stock moves toward the average target. RBC’s recent downgrade to CAD 64 reflects valid concerns about the company’s liquidity and operational challenges, particularly related to mine depletion. Despite this, the overall consensus remains positive with a Buy rating from analysts.

Investors should balance the potential long-term benefits indicated by the average target price and Buy ratings against the immediate concerns highlighted by RBC. The stock’s recent performance has been mixed, with notable declines over the past month but some positive movement over the past year. The Slightly Bullish outlook from Stock Target Advisor suggests a cautious yet optimistic view on Suncor’s potential.