RBC Capital Markets Optimistic On Suncor Amid New Leadership, Focus On Accountability
08:03 AM EDT, 09/16/2022 (MT Newswires) -- RBC Capital Markets said Thursday that Suncor Energy Inc. (SU.TO)'s direction of travel is positive amid new leadership and an intensified focus on accountability.
RBC said it is optimistic that the path of Suncor's operating and stock performance will improve over the coming months.
The company may name its new CEO by year-end while noting that the new leader will be expected to lead efforts to enhance safety and reliability, decarbonize operations, reduce debt and boost shareholder returns.
According to RBC, Suncor will continue to equally allocate excess funds between debt reduction and share repurchases until its net debt reaches $12 billion. Once the company reaches its net debt floor of $9.0 billion, all of excess funds will be directed towards shareholder returns.
Suncor is RBC's favorite integrated company and is on its Global Energy Best Ideas List. The company received an outperform rating with a $56.00 price target.