U.S. financial newspaper Barron’s is bullish on the outlook for Canadian Natural Resources Ltd. (TSX: T.CNQ, Stock Forum) and Suncor Energy Inc. (TSX: T.SU, Stock Forum) (NYSE: SU, Stock Forum).
In a February 23, 2013 report, Barron’s said the stocks have fallen out of favour over the last few years as strong growth in U.S. oil and gas production reduced the need for Canadian energy exports, hurting prices for Canadian crude.
However, the report said the depressed shares of both companies look appealing as they trade for a fraction of their 2008 peaks. It also said both could become targets for activist investors, given their valuable asset base and low share prices.
Suncor shares were almost unchanged Monday, easing 0.09% to $31.92, leaving the company with a market cap of $48.6 billion, based on 1.5 billion shares outstanding. The 52-week range is $36.80 and $26.97.
Canadian Natural Resources shares rose 2.2% to $31.04, leaving the company with a market cap of $33.9 billion, based on roughly one billion shares outstanding. The 52-week range is $38 and $25.58.
Energy investors dumped shares of Suncor and CNQ as U.S. oil production rose. Their depressed shares could rise 30% or more, Barron’s concludes.