5 Integrated Oil and Gas Companies to Invest In According to Hedge Funds

2. Suncor Energy Inc. (NYSE:SU)

Suncor Energy Inc. (NYSE:SU) is one of the 10 integrated oil and gas companies to invest in according to hedge funds.

On June 29, Devin McDermott from Morgan Stanley reduced his target price on Suncor Energy Inc. (NYSE:SU) from $65.37 to $64.66, which still results in an adjusted upside potential of more than 18%. The analyst reaffirmed an Equal Weight rating on the stock. McDermott attributed his stance to the recent dip in oil prices, following the announcement of a memorandum of understanding between Iran and the United States, back on June 14.

He noted that the West Texas Intermediate is currently touching levels observed prior to the start of this conflict. Based on that, the analyst has revised his energy price forecasts.

Back on June 5, Goldman Sachs downgraded Suncor Energy Inc. (NYSE:SU) from Buy to Neutral. The firm set a price target of $72, leading to an upside potential of more than 32%. The rating downgrade was based on the stock’s outperformance across multiple years, leading the firm to believe that it does not have much upside at the current level.

It is pertinent to mention that since 2023, Suncor stock has grown by a 2x multiple amid an operational turnaround under Rich Kruger, the company’s CEO. However, given the company’s impressive execution around its Firebag and Fort Hills assets, the firm still holds an optimistic view of the stock despite a rating downgrade.

Suncor Energy Inc. (NYSE:SU) is an integrated energy company that produces and transports crude oil, bitumen, and byproducts from oil sands, while operating offshore and onshore exploration in Canada, Libya, and Syria. It also refines crude oil into petroleum and petrochemical products, selling to retail customers.