Goldman Sachs Positive on Oil Sands Stocks

Goldman Sachs issued an investor note this morning that went positive on oil sands names, namely: Canadian Natural Resources (NYSE: CNQ), Suncor (NYSE: SU), and Cenovus (NYSE: CVE). Their favorite among the three is CNQ, though they raised estimates on all three names.

Goldman cited meaningful long-term production for each company relative to the more lackluster growth outlook for most of the US-based integrated oil companies, as well as a wrongfully assumed oil sands cost curve for companies across the board.

Analysts believe that the companies can produce at a lower cost than once thought and that profits will exceed expectations.