Suncor Energy is a buy, but be prepared to switch if oil prices peak, says Jim Cramer

CNBC’s Jim Cramer on Friday advised investors to pick up shares of the Canadian oil producer. suncor energybut only if they are confident that oil prices will stay high.

Cramer’s comments come after activist investment firm Elliott Management, which owns a 3.4% stake in Suncor, called the firm shuffle their management and take other measures to improve their performance.

“I think the future of Suncor is less about this activist campaign and more about where the price of crude might go. If you think it’s going to stay high, this could be an absolutely great move because the tar sands can drive tremendous oil growth.” earnings.” the “bad moneysaid the host.

“However, in fact, if you think oil will peak soon and go down significantly, this stock will be a dog and no matter what changes.” [Elliot Management] do,” he added.

Shares of Suncor fell 2.58% on Friday but hit a new 52-week high earlier in the day.

Elliott Management cited “missed production targets, high costs and, tragically, a series of employee deaths and other safety incidents” in its letter.

Suncor answered to Elliott’s letter stating that it will review the investment firm’s recommendations.

“Whether you look at it from a financial perspective or a purely human perspective, this is not a well-run company,” Cramer said of Suncor’s track record.

However, he said he believes the company has more room to operate as the price of crude oil has risen, meaning the company could become a high performer if it takes Elliott’s recommendations into account.

Brent Crude futures settled at $109.34 on Friday while US West Texas Intermediate Crude settled at $104.69.

“I think the stock went up…yesterday because Elliott’s confidence in Wall Street can push Suncor’s board to release value,” Cramer said. “Here’s some free advice for Suncor directors: work with these guys.”

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