2024-04-17 04:02:26 ET
Summary
- Suncor's new management is successfully transforming the company from hazardous to safe.
- Recent results show large improvements across all metrics.
- Suncor's integrated business model makes its free cash flow very resilient.
- An increase in shareholders' payout is on the horizon, with a large potential for dividend growth from the current 4.25% yield.
- A 5-year projection with a DCF valuation points to a target share price of C$67 or US$49, suggesting a 31% upside in the share price, making it a strong buy.
Investment Thesis Summary
Suncor's ( SU )( SU:CA ) new management seems to be successfully turning the company into a better future in terms of safety, operations, and financial results. The stock price has not yet reflected this new management's achievements, and the market still seems to be waiting for the next few quarterly results....
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Suncor Energy: Turnaround Story Not Reflected In The Share Price