Suncor Energy Buy Rating Reiterated Following Board Appointments, Retail Business Review
11:07 AM EDT, 07/19/2022 (MT Newswires) -- Goldman Sachs on Tuesday reiterated its buy rating on the shares of Suncor Energy (SU.TO) with a US$46.00 price target after the oil producer and refiner agreed to add three independent board members in an agreement with activist investor Elliott Investment Management and review its retail gasoline operations for a possible sale.
"On 7/18 before the market open, Suncor Energy (SU, Buy) announced the company has entered into an agreement with Elliott Investment Management, which includes (a) three new independent directors to join the Board - two of whom will serve on
the CEO search committee, and (b) the new Board committee will conduct a strategic review of SU's Downstream Retail business," the investment bank said in a note. "The company highlighted the announcement will increase SU's ongoing efforts to enhance safety/reliability/strong operational execution. On the retail side, while some investors see advantage in SU being involved in the full Downstream value chain, others point to peers such as IMO.TO (Buy) and CVE (Buy) that have sold or announced the sale of retail assets in recent years."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 40.60, Change: +0.86, Percent Change: +2.16