Deutsche Bank has hiked its price target on Suncor Energy Inc. (NYSE:SU) to US$100 from US$95, calling the stock a “long-term geopolitical hedge.”
The forecast represents upside of roughly 30%.
“Suncor’s massive oil sands positions are expected to generate sustained production growth with no declines over the next 50 years,” the firm said in a note to clients.
Deutsche Bank changed its recommendation to ‘buy’ from ‘hold’ for Suncor shares, saying they are currently trading at a discount.
The stock was up more than US$2.59, or 3.5%, an hour before the close.
SU 1-yr chart: