Scotiabank Adjusts Suncor Energy (SU) Price Target Upward, Maintains Sector Perform

Suncor Energy Inc. (NYSE:SU) is included among the 10 Canadian Stocks with Highest Dividends.

On April 21, Scotiabank raised its price recommendation on Suncor Energy Inc. (NYSE:SU) to C$90 from C$85. It reiterated a Sector Perform rating on the shares.

On April 14, JPMorgan raised its price goal on SU to C$105 from C$79 and kept an Overweight rating as part of a Q1 preview. The firm pointed to higher commodity prices as the main reason behind the increase. The analyst expects Suncor to deliver another strong quarter, with solid execution across both upstream and downstream operations.

Last month, Reuters reported that Suncor Energy expects most of its bitumen production by 2040 to come from steam-assisted extraction. This marks a structural shift for the company. It also signals a move toward lower costs and higher long-term cash flow. At present, about 70% of Suncor’s oil sands crude comes from large-scale mining operations in northern Alberta. These operations rely on trucks and shovels to extract bitumen that sits close to the surface.

The remaining 30% is produced from deeper deposits using steam-based methods. This process, known as in situ, helps loosen the oil underground so it can be pumped to the surface. Over the next 15 years, that mix is expected to change. By 2040, around 60% of production will come from in situ projects, while mining will account for 40%, according to CEO Rich Kruger at an investor day presentation. The shift reflects declining output from the Base Plant mine, which is expected to be largely depleted by the mid-2030s. It also aligns with the company’s focus on lowering production costs.

Suncor Energy Inc. (NYSE:SU) is a Canada-based integrated energy company. Its operations are organized into Oil Sands, Exploration and Production (E&P), and Refining and Marketing segments.

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