Suncor Energy (TSE:SU)(NYSE:SU) is focusing on driving down its cost structure to improve performance, stay competitive, and support profitability. In that regard, the company plans to eliminate 1,500 jobs by the end of this year.
At its investor day held in November last year, Suncor said that it is taking actions to cut costs through efficient supply chain management and reducing contractor headcount. Furthermore, it plans to lower employee costs by eliminating jobs across all levels.
During the Q1 conference call in May, Suncor’s management stated that they are intensely focusing on costs and organizational efficiency. Further, it is strengthening its balance sheet, reducing debt, and enhancing shareholders’ returns through higher dividend payments.
Suncor reduced its net debt by C$3.2 billion in 2022. At the same time, it returned about C$7.7 billion in cash to its shareholders in the form of dividends and share repurchases. Further, in Q1 of 2023, Suncor returned C$1.6 billion.
While Suncor is focusing on reducing costs, decreasing crude oil realizations could adversely impact its adjusted operating earnings. Against this backdrop, let’s look at what analysts recommend for Suncor stock.
Is Suncor Stock a Good Buy Now?
Suncor stock sports a Strong Buy consensus rating on TipRanks based on eight Buy and two Hold recommendations. Further, analysts’ average price target of C$57.75 implies a stellar upside potential of 49.84%.
According to TipRanks’ data, Gregory Pardy of RBC Capital is the most accurate analyst for Suncor stock. Copying Pardy’s trades on DIS stock and holding each position for one year could result in 60.34% of your transactions generating a profit, with an average return of 13.02% per trade.