National Bank Financial on Wednesday reiterated its outperform rating on the shares of Suncor Energy (SU.TO, SU) while raising its price target to C$76.00 from C$73.00 following third-quarter results from the oil producer and refiner.
"Average production of 829 mboe/d was up 8% sequentially (+20% Y/Y), driven by increased working interest in Fort Hills and turnaround timing, and in line with both NBF and consensus estimates of 800 mboe/d and 806 mboe/d, respectively. CFPS of $2.98 (+12% Q/Q; +6% Y/Y) was a large beat versus both NBF and street estimates of $2.34 and $2.38, respectively. The delta to our estimates is wide-ranging, with stronger-than-expected performance across the portfolio. Suncor generated RFCF of ~$1.5 billion in the quarter after capex of ~$1.6 billion and dividends of ~$0.7 billion, returning an additional ~$0.8 billion to shareholders via buybacks (~15 mln shares repurchased in the quarter and ~37 mln shares repurchased during the first nine months of the year). We reiterate our Outperform rating, but are increasing our target price to $76 (up from $73)," analyst Travis Wood wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 55.64, Change: +2.48, Percent Change: +4.67
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