Tudor, Pickering, Holt on Tuesday reiterated its buy rating on the shares of Suncor Energy (SU.TO, SU) with a C$66.00 target price following the oil producer and refiner's second-quarter results.

"SU's earnings update was incrementally positive for us on the completion of high-profile turnaround activity, affirmation that outperformance to date is flowing through to FY expectations, and longer-term outlook for upside to both Upstream productive capacity and Downstream availability via the extension of intervals between turnarounds. At its discounted valuation to seniors comps (TPHe nearly 2pp on FY'26 FCF/EV; TPHe 9.5%), what we see as clear running room on operations following execution on the coke drum replacement project (completed in 67 days vs. the estimated 91 and original 100+), and transparency on buyback plans (C$250MM/mo), SU remains our top pick within oil sands. On the FY guide, the Q2 earnings release included the positive revision to capex (-C$400MM at the midpoint to C$5.7-5.9B; updated TPHe C$5.87B vs. prior C$6.23B and Street C$5.96B), with call commentary all but confirming upside to production expectations (speaking to YTD performance pointing to the high ends of guidance; TPHe/Street 845/839mbopd Upstream production (prior TPHe 841) and TPHe/Street 461/459mbpd Downstream throughput (prior TPHe 447) vs. guidance of 810-840 and 435-450, respectively," analyst Jeoffrey Lambujon noted.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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