In a significant move, Wells Fargo analyst Ned Baramov upgraded Sunoco LP (NYSE: SUN) to an Overweight rating on October 29, 2025, accompanied by a price target of $65. This change reflects growing confidence in the company’s ability to navigate the current market landscape, suggesting potential upside opportunities for investors. As the stock currently trades at $53.39, this upgrade may signal a compelling buy for those looking to capitalize on its favorable prospects.
Recent Price Action
Sunoco’s stock has displayed a measured degree of volatility recently, with a slight decline of 0.13%, amounting to a drop of $0.07 in its last trading session. Currently priced at $53.39, SUN is trading well below its 52-week high of $64.23, which marks a decline of approximately 10.84%. Conversely, the stock’s 52-week low stands at $11.28. The trading volume for the latest session reached 354,739 shares, below the three-month average of 431,928, hinting perhaps at a cautious investor sentiment in the face of recent market conditions. With a market capitalization of approximately $7.28 billion and a relatively low beta of 0.517, SUN exhibits stability, potentially appealing to risk-averse investors.
Short- and Long-Term Performance
Examining Sunoco’s performance across different time horizons presents a mixed picture. Over the last 30 days, the stock has shown a robust gain of 6.76%, reflecting a rebound after prior declines. However, the three-month performance reveals a downturn of 3.47%, indicating challenges in the intermediate term. Year-to-date, the stock has managed a modest increase of 2.18%. The weekly and monthly volatility, measuring 2.22% and 2.14%, respectively, suggest a relatively stable, albeit cautious investment environment. Overall, while recent trends indicate positive movements, they must be contextualized within broader market conditions and sector performance.
Earnings Analysis
A closer look at Sunoco’s earnings reveals a stark contrast between actual and expected performance. For the most recent quarter ending August 6, 2025, the company reported earnings per share (EPS) of $0.33, significantly missing the consensus estimate of $1.68 by about 80.4%. This failure follows a previous quarter where the actual EPS of $1.21 also fell short of expectations of $1.69, with a surprise factor of -28.4%. These disappointing results could raise concerns regarding the company’s earnings predictability and overall financial stability.
Analyst / Consensus View
The consensus among analysts for Sunoco is decidedly positive, particularly following the recent upgrade from Wells Fargo. The latest ratings indicate a total of two analysts recommending the stock as a Buy, with no Hold or Sell ratings assigned. The average price target from analysts is set at $65.5, with a high target of $66 and a low of $65. This consensus signals solid optimism among financial experts about Sunoco’s potential for growth and resilience in challenging markets.
Stock Grading or Fundamental View
Sunoco has received a Stocks Telegraph Grade of 46. This score suggests that while the company may exhibit certain strengths, there remain areas of concern regarding its overall financial health and investment viability. Despite the grade indicating a need for improvement, the recent analysts’ upgrade could portend a shift in the company’s trajectory, especially if it can address the discrepancies evidenced in its earnings reports.
Conclusion
For investors looking to add Sunoco LP to their portfolios, this stock presents a mixed bag of risk and opportunity. The recent Overweight rating from Wells Fargo signals good potential for upward movement, particularly for those with a longer-term investment horizon. However, the earnings miss poses an immediate concern, highlighting the necessity for prospective investors to weigh the stock’s historical performance against future growth potential. Sunoco may suit growth-oriented investors but comes with inherent risks, particularly in light of recent earnings results. Keeping a close watch on upcoming earnings reports and market developments will be crucial for a well-informed investment decision in this evolving landscape.
