Based on the technical analysis and recent market data, Suncor Energy (SU) shows mixed signals:
Technical Analysis
The stock is currently trading at $39.41, with RSI at 60.59 indicating a neutral to slightly bullish momentum. The stock is trading above its 20-day moving average of $37.64, suggesting short-term upward momentum.
Fibonacci Levels
Recent Developments According to recent reports, Imperial Oil's performance (a peer company) suggests the oil sector is facing some headwinds, including:
Political Risk Factor A new development that could impact the stock is Trump's potential tariff plans. If implemented, these could affect Canadian oil companies including Suncor, potentially impacting cross-border trade and pricing.
Analyst Opinion Recent analyst coverage from RBC Capital [from relevant data] maintains a Buy rating with a price target of $66, suggesting significant upside potential of 72.19% from current levels.
Based on the technical setup and current market conditions, selling SU at current levels is not recommended as the stock maintains a bullish bias above its key moving averages with strong analyst support.
Based on the provided data and context, here's my analysis for Suncor Energy (SU) stock price prediction in 2025:
Technical Analysis
The current price of SU is $39.41 as of January 23, 2025, showing a moderate upward trend. The stock has been trading between support at $38.28 and resistance at $40.34 based on Fibonacci levels.
Fundamental Drivers
Price Target Analysis
Based on the technical and fundamental factors, here are the projected scenarios for SU stock in 2025:
Base Case ($42): Most likely scenario (60% probability)
Bull Case ($45): Optimistic scenario (25% probability)
Bear Case ($36): Pessimistic scenario (15% probability)
The most likely scenario points to a target price of $42, representing approximately 6.5% upside from current levels, driven by strong operational performance and robust cash flow generation, despite potential headwinds from trade policies.
The S1 support level for SU Stock is $38.81 ,The R1 resistant level for SU Stock is $40.33.
As of the end of day on 2025-01-24, the price of SU Stock was $38.95.
The target price for SU Stock according to analyst rating is 43.76, with the highest price target at 49.38 and the lowest at 37.56. Analysts have a Moderate Buy rating on SU Stock overall.
The market cap of SU is $48.5B.
Based on the provided data, I'll analyze whether Suncor Energy (SU) is overvalued.
Valuation Analysis The current valuation metrics show SU trading at attractive levels with a P/E of 8.02, EV/EBITDA of 4.51, and P/B of 1.39 for Q3 2024, all below industry averages.
Financial Performance Q3 2024 showed strong results with net income of CAD 2.02 billion, up from CAD 1.57 billion in Q2. The company maintains healthy margins with gross margin at 48.87% and net margin at 15.67%.
Analyst Sentiment Recent analyst ratings are predominantly positive. RBC Capital reiterated a Buy rating with a $66 price target on January 7, 2025, implying a 72.19% upside. Goldman Sachs maintains a Strong Buy rating with a $45 target.
Growth Outlook The company demonstrates solid operational efficiency with improving quarterly revenues and consistent profit margins. The current debt-to-equity ratio of 33.35% indicates a healthy balance sheet structure.
Based on these factors, SU is not overvalued. The stock shows strong fundamentals, positive analyst sentiment, and trades at attractive multiples relative to peers and its historical averages.
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.
Based on the provided data and market context, here is the price prediction analysis for Suncor Energy (SU) stock by 2030:
Suncor Energy's stock price is projected to reach $65-70 by 2030, driven by its strong operational efficiency and strategic renewable energy investments. The company's integrated business model and commitment to both traditional oil production and clean energy transition positions it well for long-term growth.
The key drivers supporting this prediction include Suncor's continued enhancement of cash yield and focused efforts on capital returns, with over 65% of market capitalization paid out in dividends to shareholders over the past decade. Additionally, the company's stable production portfolio with a low corporate decline rate of 5% provides reliable and predictable returns.
The company's strategic investments in renewable energy projects and sustainability initiatives align with global energy transition trends, which should help maintain its competitive position through 2030 as the world moves toward cleaner energy sources.
SU has a total of 14906 employees.