Investing.com - CIBC raised its price target on Suncor Energy stock (NYSE:SU) (TSX:SU) to Cdn$94.00 from Cdn$92.00 while maintaining an Outperformer rating. The stock has surged 106% over the past year to $65.91, trading near its 52-week high of $67.76, according to InvestingPro data.
The firm hosted Suncor's management for meetings following the company's Investor Day in Toronto. Management focused on operational momentum built over the past three years and plans to improve its dividend breakeven to US$38 WTI by 2028.
CIBC analyst Dennis Fong stated, "The meetings and our discussions with management reinforced our view that executing this ambitious plan could drive material share price upside."
The firm reiterated its Outperformer rating with Suncor remaining its Top Pick in 2026. InvestingPro Tips highlight that the company has raised its dividend for four consecutive years, with 16 additional tips available to subscribers. The new price target is based on a 1.0x multiple to CIBC's net asset value of $96.89, up from $92.85.
Fong noted the company's quality resource base underpins future development beyond 2028.
In other recent news, Suncor Energy reported impressive earnings for the fourth quarter of 2025, with earnings per share reaching CAD 0.8057, surpassing analysts' estimates of CAD 0.732. The company's revenue also exceeded expectations, totaling CAD 8.82 billion against the forecasted CAD 8.77 billion. Additionally, Suncor announced an increase in its annual share repurchase program, raising the target by more than 20% to $4 billion for 2026 as part of a new three-year growth plan. The plan includes increasing normalized free funds flow by $2 billion by 2028 and reducing the corporate WTI breakeven to $38 per barrel.
Suncor also renewed its share buyback program, allowing the purchase of up to 118.7 million common shares for cancellation, representing about 10% of its public float. Meanwhile, RBC Capital raised its price target for Suncor shares to Cdn$89.00 from Cdn$75.00, maintaining an Outperform rating. This upgrade followed the company's 2026 Investor Day presentations which highlighted the completion of its corporate transformation and introduced a strategic plan. However, Suncor is facing production challenges due to a natural gas pipeline outage, as reported by BMO Capital Markets. The outage has significantly impacted Suncor's operations in northern Alberta, with a curtailment of natural gas deliveries affecting its oil sands facilities.