Suncor Energy Inc's. (Suncor) top- and bottom-line were negatively impacted by low crude oil prices during 2Q 09. Going forward we expect hydrocarbon prices will recover in 2H 09, leading to higher realized prices for the company's oilsands products. Moreover, we expect Suncor's merger with Petro- Canada will benefit the company through the diversification of its assets, cost savings and enhanced operating efficiency going forward....

Suncor Energy Inc. (Suncor) and Petro-Canada announced plans to merge on 23 March 2009. The merger is expected to result in significant cost savings and operating efficiencies. It will enable Suncor to diversify from being a pure oilsands player, gaining access to conventional oil assets as well as Petro-Canada’s extensive refining business. We view this merger as a positive development, expecting the entity to create additional value for its shareholders....

Suncor Energy Inc.‘s (Suncor) common stock price has increased 13.6% since our last update report, achieving our target price on 04 March 2009. An anticipated recovery in oil prices coupled with higher production levels in FY 2010 support our long term positive outlook for the common stock. However, given ongoing instability in global markets and low crude oil prices expected during FY 2009, we do not foresee a significant upside from current levels…