The firm said it raised its rating on the integrated energy company as it expects an improvement in operating results for the second half of the year.
Stifel said higher consensus estimates and a growth in cash flow that can be used for buybacks also influenced the upgrade.
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Shares of Suncor Energy are up 0.63% to $40.02 this morning.
Separately, TheStreet Ratings team rates SUNCOR ENERGY INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNCOR ENERGY INC (SU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SU's revenue growth has slightly outpaced the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 5.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SU's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
- Powered by its strong earnings growth of 42.25% and other important driving factors, this stock has surged by 27.18% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- 36.36% is the gross profit margin for SUNCOR ENERGY INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.35% is above that of the industry average.
- You can view the full analysis from the report here: SU Ratings Report