02.24
Suncor Energy (SU) – $31.55 – Fire Repairs Unfold at U1
Sector Perform, Average Risk, Price Target; $46.00
On the heels of its assessment of an oil sands fire earlier this month, Suncor Energy anticipates that its 125,000 bbl/d Upgrader 1 should return to production by early April. Suncor does not expect to collect insurance proceeds in connection with the fire at Upgrader 1. RBC CM states that it is not “all that fussed” with Suncor’s remediation plan in its base oil sands operations, but notes that there is not much to cheer about in the near term. RBC CM maintains a Sector Perform rating on Suncor and a one-year target price of $46 per share. Investors seeking to retain oil sands exposure should switch into Canadian Natural Resources (Outperform, $95 Target) – RBC CM’s favourite stock within its coverage group.
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