Suncor Energy's Revised Earnings Boost Buy Rating to $60.00: Wells Fargo Analyst

Suncor Energy's revised earnings expectations and strong cash flow reinforce Wells Fargo analyst Roger Read's Buy rating and C$60 price target. Adjustments in oil sands production volumes and favorable commodity prices support the positive outlook. The company's expected adjusted cash flow from operations of approximately $2.58 billion in Q2 further reinforces the Buy rating.

Suncor Energy Inc. (SU) has seen a positive shift in its financial outlook, with Wells Fargo analyst Roger Read maintaining a Buy rating and a price target of C$60.00. The revised earnings expectations and robust cash flow figures have bolstered the analyst's positive outlook on the company's performance.

The adjustments in Suncor Energy’s oil sands production volumes and the actual commodity prices for the second quarter have led to an increase in the earnings per share estimates, supporting a favorable outlook. Additionally, the company’s financial performance, with an expected adjusted cash flow from operations of approximately $2.58 billion in the second quarter, further reinforces the Buy rating [1].

Other factors contributing to the positive outlook include the stability of downstream estimates and the progress in operational efficiencies, which are in line with the company’s guidance. Roger Read, who covers the Energy sector and focuses on stocks such as EOG Resources, EQT, and Ovintiv, has an average return of 0.0% and a 50.20% success rate on recommended stocks [1].

In a separate report released on July 8, RBC Capital also maintained a Buy rating on the stock with a C$65.00 price target, further validating the positive sentiment [1].

Institutional investors have also shown interest in Suncor Energy. Segall Bryant & Hamill LLC reduced its position in shares of Suncor Energy Inc. by 11.7% during the first quarter, but the institutional investor still owns a significant portion of the stock [2]. Several other institutional investors and hedge funds have made changes to their positions, with some increasing their holdings in the fourth quarter [2].

Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally, with segments including Oil Sands, Exploration and Production, and Refining and Marketing. The company reported $0.91 earnings per share for the second quarter, beating analysts' consensus estimates of $0.86 by $0.05. The business had revenue of $9.10 billion for the quarter, compared to analysts' expectations of $13.39 billion. Suncor Energy had a net margin of 11.95% and a return on equity of 14.90% [2].

The company's debt-to-equity ratio of 0.21, quick ratio of 0.84, and current ratio of 1.39 indicate a healthy financial position. The stock has a market capitalization of $47.90 billion, a PE ratio of 11.29, a price-to-earnings-growth ratio of 3.38, and a beta of 0.80 [2].

In summary, Suncor Energy's revised earnings expectations and strong cash flow figures have reinforced Wells Fargo analyst Roger Read's Buy rating and C$60 price target. The positive outlook is supported by adjustments in oil sands production volumes, favorable commodity prices, and stable downstream estimates.

References:
[1] https://www.tipranks.com/news/ratings/suncor-energys-revised-earnings-and-strong-cash-flow-reinforce-buy-rating-ratings
[2] https://www.marketbeat.com/instant-alerts/filing-suncor-energy-inc-nysesu-shares-sold-by-segall-bryant-hamill-llc-2025-07-17/