CIBC Capital Markets raised its price target on Suncor Energy Inc. (SU.TO, SU) to $70 from $65 (Outperformer), and Ovintiv Inc. (OVV.TO, OVV) to US$55 from US$50 (Neutral), respectively.
"Q3/25 earnings highlighted production growth Q/Q as planned maintenance was concluded in Q2 and major projects showed ramp-up," analyst Dennis Fong said in a note to clients that outlined large cap energy themes for 2026.
"Cost discipline remains a key focus, and higher production combined with downstream performance to drive beats vs. consensus and our estimates," the analyst said.
"In Q4/25, we expect general oil price pessimism to remain the predominant macro theme, as OPEC+ increases physical volumes but has announced a pause starting in 2026," Fong said.
"Our preferences remain slated towards integrated exposure, as downstream margins continue to demonstrate resilience in a volatile commodity price environment, and low-cost producers," the analyst said.
"The large-cap Canadian energy group continues to rate higher than its US and supermajor peers, Fong said.
"We view the premium of Canadian names as being largely driven by favourable exposure to strong downstream margins among the continued investor outlook of low oil prices in the near term."
(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)
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