Suncor Energy Maintained at Hold by TPH After 2023 Guidance Presentations; Price Target Cut to C$52.00
11:14 AM EST, 11/30/2022 (MT Newswires) -- Tudor, Pickering, Holt on Wednesday reiterated its hold rating on the shares of Suncor Energy (SU.TO, SU) while reducing its price target to C$52.00 from C$54.00 after Canada's No.1 oil producer and refiner staged presentations on its 2023 guidance.
"While the company is on the cusp of stepping up its shareholder returns framework towards the 75% range as the C$12B (ex. FX impacts) net debt target is achieved, as noted still anticipated in the Q1'23 timeframe, and offering a competitive capital return yield, we remain Hold-rated on the stock for two key reasons: 1) we see the key to putting a bow on the charted path forward being the ultimate announcement on the CEO, with interim CEO Kris Smith highlighting at the tail-end of the presentation that the process is expected to be finalized in Q1'23; and 2) while clear efforts top-down are underway on executing on a better safety and reliability track record, we continue to see the transformation as taking time before investors are willing to capitalize it in shares. On strip pricing, our updated outlook has the company trading at ~11% FCF-to-EV in 2023 vs. Canadian integrateds peers in the 10-11% range," analyst Matt Murphy noted.
(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: 44.93, Change: -0.50, Percent Change: -1.10