Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 55th on the Fortune 500 list of the largest U.S. corporations by total revenue. The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients. In addition, it provides advice, investing, and execution for institutions and individuals across public and private markets. At 24/7 Wall St., we have followed the company’s research for 15 years to bring our readers its top stock ideas. Recently, some big targets on Strong Buy-rated dividend energy stocks from Canada caught our attention.
Oil prices have dropped to levels not seen in four years. Despite OPEC+’s efforts to increase production, the potential for strong sanctions against Russia has put oil back on the front burner on Wall Street. Prices for West Texas Intermediate and Brent crude surged this week in front of President Trump’s meeting with Vladimir Putin. Despite recent fears over demand, the summer driving season has almost a month left, and temperatures have been unseasonably warm, driving natural gas use.
The Goldman Sachs energy team is very positive on three top Canadian energy stocks that all pay hefty dividends, and all have decent upside to the price target set by the analysts. All three are outstanding ideas for growth and income investors looking to add some top energy stocks to their portfolios.
Why we recommend Goldman Sachs stocks
Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum. It is likely to continue doing so for years.
Canadian Natural Resources
With a hefty dividend and trading right in the middle of the 52-week range, this looks like a solid entry point for new investors. Canadian Natural Resources Ltd. (NYSE: CNQ | CNQ Price Prediction) is a senior crude oil and natural gas production company. The company has operations in its core areas located in Western Canada, the United Kingdom portion of the North Sea, and Offshore Africa.
The Goldman Sachs team had this to say about the company in its research report:
We remain constructive on the shares, where we see attractive risk/reward following recent underperformance. We continue to highlight the company’s best-in-class operations and cost efficiency efforts, as well as several acquisitions over recent months that strengthen the outlook for volume growth. Though we expect heavy oil differentials to widen out in the second half of 2025, we believe the company’s competitive break-even of low to mid-US$40/b WTI (covering both sustaining capital and the dividend) should protect shares from market volatility.
Its Oil Sands Mining and Upgrading segment produces synthetic crude oil through bitumen mining and upgrading operations at Horizon Oil Sands and the company’s direct and indirect interest in the Athabasca Oil Sands Project.
Within Western Canada in the Midstream and Refining segment, the company maintains certain activities that include pipeline operations, an electricity cogeneration system, and an investment in the North West Redwater Partnership, a general partnership formed to upgrade and refine bitumen in the Province of Alberta.
The Pelican Lake asset is a large, contiguous, shallow, medium crude oil pool. It produces natural gas in western Canada and has a significant land base in both the Montney and Deep Basin.
The Goldman Sachs target price is set at $37, which would be a strong 25% move from current trading levels.
Cenovus Energy
Based in Calgary and trading below $20, Cenovus Energy Inc. (NYSE: CVE) may have the best total return potential for growth and income investors. The Canada-based integrated energy company has oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining, and marketing operations in Canada and the United States.
The Goldman Sachs analyst had this to say about the company:
At Cenovus Energy, we see significant progress on key Upstream growth projects and highlight the company’s expectation for first oil at West White Rose in 2Q26, where the CGS and topsides have already been installed. We are more confident about a path to profitability in U.S. refining after results improved quarter-over-quarter. We note that management continues to reiterate a focus on integration within the Downstream segment, and views the company as a logical seller of their JV with Phillips 66 at Borger and Wood River.
The company’s segments include:
- Upstream
- Downstream
- Corporate
- Eliminations
The Upstream segment includes Oil Sands, Conventional, and Offshore, while the Downstream segment consists of Canadian Manufacturing and the United States Manufacturing.
The company’s upstream operations include:
- Oil sands projects in northern Alberta
- Thermal and conventional crude oil, natural gas, and natural gas liquids (NGLs) projects across Western Canada
- Crude oil production offshore Newfoundland and Labrador
- Natural gas and NGLs production offshore China and Indonesia
The Downstream operations include upgrading and refining operations in Canada and the United States, and commercial fuel operations across Canada.
The Goldman Sachs price target is $17.
Suncor Energy
Goldman Sachs recently bumped up its target price for the stock, and with a substantial dividend and outstanding fundamentals, this may be the best pick of the three. Suncor Energy Inc. (NYSE: SU) is a Canada-based integrated energy company. Its segments include Oil Sands, Exploration and Production (E&P), and Refining and Marketing.
The analyst noted this in a recent research report:
We came away from this earnings season and our Canada Energy Series incrementally more positive around Suncor Energy, where we see an attractive setup in the back half of the year and into 2026, supported by strong operational momentum, accelerated turnaround improvement, and continued progress on 3-year targets. We note the company completed the Base Plant turnaround ahead of schedule in early July, a project management described as one of the most extensive and complex in recent company history.
Its operations include:
- Oil sands development
- Production and upgrading
- Offshore oil production
- Petroleum refining in Canada and the United States
- The Petro-Canada retail and wholesale distribution networks, including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicle (EV) stations
The company is developing petroleum resources while advancing the transition to a lower-emissions future through investments in lower-emissions intensity power, renewable feedstock fuels, and projects targeting emissions intensity.
Suncor Energy also conducts energy trading activities focused primarily on the marketing and trading of crude oil, natural gas, byproducts, refined products, and power. It also wholly owns the Fort Hills Project, which is located in Alberta’s Athabasca region.
The Goldman Sachs price target is $44.
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