Globe says Cox shaves Suncor Energy target to $ 2016-06-09 05:27 ET - In the News
The Globe and Mail reports in its Thursday, June 9, edition that Raymond James analyst Chris Cox lowered his target price for Suncor Energy ($35.47) by $1 to $42 in reaction to the company's announcement of a $2.5-billion bought deal to reduce debt and pay for acquisitions. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $40.70. Mr. Cox reiterated his "outperform" rating for Suncor. He says the equity raise is not a replacement for the previous asset-disposition guidance. Mr. Cox says in a note: "We expect additional details around the asset dispositions sometime next quarter but progress here appears to be proceeding as expected. Alongside the equity issue, this should result in Suncor once again having among the better balance sheets in the peer group by year-end." Mr. Cox says more acquisitions are likely for its exploration and production (E&P) portfolio. The Raymond James stockpicker says, "We see an opportunity for Suncor to acquire stakes in projects currently under development at attractive valuations, similar to what the company accomplished with the acquisition of Total's stake in Fort Hills last year."