RBC Capital Sticks to Their Buy Rating for Suncor Energy

By Austin Angelo

Suncor Energy (TSX: SU), the Materials sector company was revisited yesterday, and remains undervalued for at least one analyst on the street. Analyst Gregory Pardy from RBC Capital reiterated a Buy rating, with a C$50 price target.

According to TipRanks.com, Pardy is a 3-star analyst with an average return of 1.5% and a 46.6% success rate. Pardy covers the Basic Materials sector, focusing on stocks such as Penn West Petroleum Ltd, Approach Resources Inc, and Pengrowth Energy Corp.

Currently, the analyst consensus on Suncor Energy is Strong Buy and the average price target is C$49.31, representing a 15.8% upside.

In a report issued on May 15, Scotiabank also maintained a Buy rating on the stock with a C$47 price target.

Based on Suncor Energy’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of C$7.82 billion and quarterly net profit of C$1.35 billion. In comparison, last year the company earned revenue of C$5.64 billion and had a net profit of C$246 million.

Suncor Energy, Inc. is an integrated energy company, which develops petroleum resource basins. Its activities include oil sands development, and upgrading, onshore and offshore oil and gas production, petroleum refining, and product marketing. It operates through the following segments: Oil Sands, Exploration & Production and Refining & Marketing. The Oil Sands segment refers to the operations in the Athabasca oil sands in Alberta to develop and produce synthetic crude oil and related products through the recovery and upgrading of bitumen from mining and in situ operations. The Exploration and Production segment includes offshore activity in East Coast Canada the exploration and production of crude oil and natural gas in the United Kingdom, Norway, Libya, and Syria, and exploration and production of natural gas and natural gas liquids in Western Canada. The Refining and Marketing segment is the refining of crude oil products, and the distribution and marketing of these and other purchased products through retail stations located in Canada and the United State, as well as a lubricants plant located in Eastern Canada. The company was founded on August 1, 2009 and is headquartered in Calgary, Canada.

The company’s shares closed last Monday at $42.58.