Buy Rating -Goldman Sachs 09:42 AM EDT, 04/20/2022 (MT Newswires) -- Goldman Sachs on Wednesday reiterated its buy rating on the shares of Suncor Energy (SU.TO) with a US$38.00 target price even as it lowered its forecast for the oil producer and refiner's first-quarter cash flows.
"We adjust our 1Q22 CFPS estimate from C$2.81 to C$2.77, which is slightly above FactSet consensus of C$2.68," the investment bank said in a note. "On the quarter, we expect an improvement in Upstream earnings on higher pricing and slightly improved volumes; and higher Downstream earnings, especially given an expected FIFO benefit. Outside of results, we expect
investors to be focused on operational execution and outlook for full year production guidance, capital returns and allocation of FCF towards buybacks (potential for >50%), and commentary around asset optimization and as it relates to ESG."