Update shared on10 Oct 2025
Fair value Increased 1.20%Analysts have raised their price target for Suncor Energy, increasing the estimate from approximately C$61.58 to C$62.32. They cite resilient energy equities and updates to financial forecasts as key factors driving this change.
Analyst Commentary
Recent research updates reflect ongoing assessments of Suncor Energy’s valuation and growth prospects, prompted by industry trends and company-specific forecasts.
Bullish Takeaways- Bullish analysts have raised their price targets in response to resilient equity performance, even as broader commodity markets show weakness.
- Revised financial models now incorporate up-to-date trends and extended financial projections through 2027. This supports a positive long-term outlook.
- Valuations have moved higher as energy equities outperform, which signals market confidence in Suncor’s execution and asset quality.
- Adjustments in commodity pricing expectations, such as maintained oil assumptions and increased crack spread forecasts, have strengthened the growth narrative.
- Some analysts have made negative revisions to natural gas expectations, reflecting continued uncertainty in certain areas of Suncor’s portfolio.
- While share price targets have increased, changes to core forecasts remain modest. This suggests that upside may be limited by sector fundamentals.
- Ongoing volatility in global commodities continues to create execution risks, which could affect Suncor’s ability to meet new financial estimates.
What's in the News
- The company completed the repurchase of 24,315,149 shares, representing 1.95% of shares outstanding, for CAD 1,249.8 million under the buyback announced on February 26, 2025 (Key Developments).
- Upstream production was reported at 808,100 barrels per day for the second quarter of 2025, marking the highest first quarter in company history (Key Developments).
- The company achieved upstream production of 831,000 barrels per day for the first half of 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from CA$61.58 to CA$62.32. This reflects updated market expectations.
- Discount Rate has decreased modestly to 6.13% from 6.20%, which indicates a reduced required return by analysts.
- Revenue Growth forecast declined marginally, moving from -1.12% to -1.17%.
- Net Profit Margin estimate has edged lower, from 10.39% to 10.21%.
- Future Price-to-Earnings (P/E) ratio is projected to increase from 16.09x to 16.56x.
Disclaimer
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