In this series, we have discussed Suncor Energy’s (SU) fourth-quarter estimates, segmental earnings outlook, and stock performance. We also reviewed the price range forecast for Suncor stock in the 13 days until its earnings are released. The company’s earnings are scheduled to be released on February 5.
Among the 12 analysts covering Suncor Energy stock, 11 (or 92%) recommended a “buy” or “strong buy,” while one recommended a “hold.” None of the analysts recommended a “sell” or “strong sell.”
Analysts’ favorable opinion
Analysts have a favorable opinion on Suncor Energy stock due to its strong financials and better growth prospects. In the third quarter, Suncor’s adjusted earnings rose 80% YoY. The company’s discretionary free fund flow rose 47% YoY during the third quarter. Suncor’s total debt-to-total capital ratio of 27% was below the global industry average—a favorable position.
Suncor is focused on its growth activities. The company’s oil sands volumes touched record highs in the fourth quarter. Suncor continued to increase the production at its projects—Fort Hills and Syncrude. Fort Hills reached 94% of its nameplate capacity, while Syncrude touched 101% of its nameplate capacity in the fourth quarter.
Analysts’ ratings for peers
Total (TOT), PetroChina (PTR), and YPF (YPF) have been rated as a “buy” by 100%, 33%, and 79% of the analysts, respectively. Chevron (CVX), ExxonMobil (XOM), and Royal Dutch Shell (RDS.A) have been rated as a “buy” by 78%, 32%, and 82% of the analysts, respectively.
Next, we’ll discuss Suncor’s fourth-quarter dividend estimate.