Analyzing Suncor, Estee Lauder, and Bombardier: Expert Recommendations and Insights

2023-08-17 22:14:52

The Global 6500 aircraft will meet the Government of Canada’s requirements for the Canadian Multi-Mission Aircraft (CMA) program, according to Bombardier. (Picture: courtesy)

What to do with the titles of Suncor, Estee Lauder and Bombardier? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that expressed.

Suncor (SU, $41.91, US$31.04): A game plan taking shape

Oil producer Suncor has just released financial results for the second quarter of its 2023 fiscal year.

RBC Capital Markets analyst Greg Pardy believes the stock has good upside potential under new CEO Rich Kruger.

“Suncor should restore some ‘financial initiative’ in the coming months, which should translate into stock appreciation over time,” he said.

Suncor reaffirmed its 2023 production forecast of 740,000 to 770,000 barrels per day, but said it believed it was hitting the lower target of that range. The analyst is betting on an average daily performance of 733,400 barrels.

“We expect Suncor’s production volumes to reach 700,300 barrels per day and 749,800 barrels per day for the third and fourth quarters, respectively.”

Suncor also expects its capital expenditures to reach the upper end of its target this year, which is set between $5.4 billion and $5.8 billion.

“Following a recent cybersecurity incident, Suncor management said its operations were back to normal, with exceptions, and that the events had no effect on its operations,” added the analyst.

At the end of the second quarter, he specifies that Suncor’s indebtedness had fallen to $14.4 billion, while it repurchased $684 million (M$) of its shares during the period ($16.8 million). shares at an average price of $40.71).

The latter points out that the title of Suncor trades at a ratio of 4.9 times its cash, compared to 5.3 times for other companies in the sector on the radar of RBC. According to him, the action of the title of Suncor should be on or slightly below the average of the companies of the sector.

Greg Pardy reiterates his recommendation of “outperformance” on the stock and his one-year target price of $49.