UPDATE: Stifel Nicolaus Upgrades Suncor Energy to Buy
Stifel Nicolaus raises its rating on Suncor Energy (NYSE: SU) to Buy from Hold as operational improvements in 1H12 operational improvements should move the name higher. Price target is established at $42.
Stifel Nicolaus says, "What should allow the name to start outperforming in 1H12 is operating results, which should show a ramp-up in high quality SAGD volumes, lower mining opex, improved upgraded volume reliability, and potential for 2H volume and costs to improve above current guidance, in our view. As a result, we are upgrading SU to a Buy with a US$42 target price, reflecting 85% of our risked NAV and 6.4x 2012E EV/EBITDA target multiple."
SU closed at $34.33 a share on Thursday.
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