Suncor: Maybe The Best Buying Opportunity One Might Get For A While

Summary:

• Suncor’s strong financials and ample oil reserves make it a buy at $35/share, with potential upside from higher oil prices and production growth.
• Canada’s proposed emissions cap is unlikely to be implemented, reducing regulatory risks and potentially boosting Suncor’s stock price.
• Suncor’s profitability and production gains position it well against peers, despite current depressed oil prices and market volatility.
• I plan to buy Suncor shares at $35/share or under and sell incrementally if the price exceeds $45/share, with a solid 4.5% dividend making the wait for my thesis to play out more pleasant.

Investment thesis: A combination of weak oil prices, as well as questions about Canada’s green initiatives that may negatively impact Canadian oil sands producers, has hurt Suncor’s (NYSE:SU) share price in the past few weeks. These shorter-term

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SU either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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