Analyst Devin McDermott lowers SU target amid oil price dip but sees 18% upside potential from current levels.
Morgan Stanley reduced its price target for Suncor Energy (SU) to $64.66 from $65.37, maintaining an Equal Weight rating. The adjustment follows a decline in oil prices after a U.S.-Iran memorandum of understanding, with WTI returning to pre-conflict levels.
The revised target still implies over 18% upside. Earlier this month, Goldman Sachs downgraded SU to Neutral from Buy, setting a $72 target, citing the stock’s strong multi-year performance. Suncor’s shares have doubled since 2023 amid operational improvements under CEO Rich Kruger.
Despite the downgrade, Goldman remains optimistic about SU’s execution on key assets like Firebag and Fort Hills.