Morgan Stanley analyst Benny Wong upgraded Suncor Energy Inc. SU from Equal-Weight to Overweight.
The key reason for the upgrade is Suncor’s de-emphasis on acquisitions, allowing the company and analysts to focus on existing projects rather than speculation.
“Without the distraction of transaction speculation, we can focus on Suncor's re-rate potential and anticipate outperformance,” said Wong. The analyst sees the outperformance being driven by three main factors:
- Excitement leading up to the completion of Suncor’s Fort Hills Project.
- Free Cash flow reversal and inflection.
- Growth and net-asset-value that may be revealed through operational synergies and optimizations.
Wong also identified key risks in a negative OPEC announcement on November 30, cost inflation in their Fort Hills project and more deterioration of the environment downstream.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.