UPDATE: Stifel Downgrades Suncor Energy on Fair Valuation

In a report published Thursday, Stifel analyst Amir Arif downgraded the rating on

from Buy to Hold, and removed the $36.00 price target. In the report, Stifel noted, “We are downgrading SU from Buy to Hold on fair valuation. With the name having essentially reached our target price and now trading at 5.1 2014 EV/EBITDA and 90% of risked NAV, we believe the name is fairly valued in the near term. With the company already showing a greater willingness to return some free cash flow to shareholders (increasing dividends, share buybacks) and with near term production growth already defined (2-3 years), we do not see any company specific drivers to cause a relative outperformance and the name should move with crude oil in the near term. Bottom line, with no company specific drivers expected in the near term and the stock at fair value we are downgrading from Buy to Hold.” Suncor Energy closed on Wednesday at $35.31.