Globe says Suncor a "core holding" for James's Cox 2017-12-05 06:58 ET - In the News
The Globe and Mail reports in its Tuesday edition that Raymond James analyst Chris Cox raised his share target for Suncor Energy to $52 from $47, $2.89 above the consensus, following recent investor meetings with its management. The Globe's David Leeder writes that Mr. Cox says, "We continue to believe Suncor represents the 'gold standard' among integrated producers, both in Canada and globally." Mr. Cox emphasizes management's confidence in its improvements in operational execution and cost structure, which he believes is positioning it well to "execute on an attractive cash return story for investors." He says in a note: "One of the key highlights from our road trip was a high level of confidence by management regarding the ramp-up of Fort Hills and opportunities to further improve operational performance at Syncrude. Despite the strong operational execution Suncor has exhibited with its base oil sands operations in recent years, we believe investors remain somewhat skeptical on both mining operations, and expect these concerns to be alleviated as 2018 progresses." He adds, "Suncor remains one of the most attractive risk-reward opportunities in the large cap energy sector and a core holding in our view."