Suncor Energy downgraded amid market uncertainty and competition risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14 Jan 26
Source: Business Insider
Suncor Energy Inc (SU) reached a 52-week high despite broader market declines, with the Nasdaq-100 down 1.66% and the S&P 500 down 0.97%.
Analysts have downgraded Suncor Energy amid concerns about market uncertainty following political changes in Venezuela, which could lead to increased competition for Canadian heavy oil producers. The potential return of Venezuelan crude poses a risk to Suncor's market share, especially as prices for Western Canadian Select (WCS) have crashed, raising doubts about future profitability.
This downgrade reflects a cautious outlook for Suncor and similar companies, as analysts recommend avoiding investments in small-cap oil and gas stocks due to the current economic climate and potential recovery challenges.
Analyst Views on SU
Wall Street analysts forecast SU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SU is 49.83 USD with a low forecast of 41.06 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 52.030
Low
41.06
Averages
49.83
High
70.00
Current: 52.030
Low
41.06
Averages
49.83
High
70.00
About SU
Suncor Energy Inc. is a Canada-based integrated energy company. The Company's segments include Oil Sands, Exploration and Production (E&P), and Refining and Marketing. Its operations include oil sands development, production and upgrading; offshore oil production; petroleum refining in Canada and the United States; and the Company’s Petro-Canada retail and wholesale distribution networks (including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicle (EV) stations). The Company is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower-emissions intensity power, renewable feedstock fuels and projects targeting emissions intensity. The Company also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products and power. It also wholly owns the Fort Hills Project, which is located in Alberta's Athabasca region.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
