Canada’s energy giants shares soar on analyst bullish outlook
Canada’s oil sands giant Suncor Energy (TSX, NYSE:SU) and crude oil and natural gas producer Canadian Natural Resources (TSX, NYSE:CNQ) saw their shares climbing this morning as both energy giants were featured in a bullish Barron’s article (subs. required) over the weekend, suggesting they could be targets for activist investors.
Suncor was up 1.38% and Canadian Natural Resources 1.68% in Toronto at 9:39 am ET.
According to the financial newspaper, both companies have what it takes —valuable assets, but less-than-aggressive capital return schemes site— to be the new darling of equity investors.
Suncor and Canadian Natural trade at 9.5 times and 13 times their forecast 2013 profits, respectively, the publication says. They are valued equally with their U.S. counterparts, but have “more attractive assets.”
Against them, however, is the growing U.S. production, which could keep the pressure on Canadian prices, the article said.