That's the view of Wells Fargo senior analyst Roger Read, who upgraded the Calgary-based integrated energy company on Wednesday, along with the U.S. oil and gas giant Chevron (CVX).
"We believe 2022 can be another good year for oil and gas equities given the favourable backdrop, and the opportunity for delivering on spending discipline and improved returns," he wrote in a note to clients.
Toronto-listed Suncor shares climbed 48 per cent in 2021, as the soaring Canadian energy group stole the limelight from other TSX components. Read bumped his rating to "overweight" from "equal weight," and raised his price target to $38 from $34.
Suncor shares added 2.71 per cent to $34.05 as at 1:07 p.m. ET on Wednesday.
"We believe SU's operating and financial performances will trend towards normal in 2022E and 2023E after a bumpy 2020 and uneven 2021," Read wrote.
Suncor slashed its dividend by more than half in June 2020, as the COVID-19 pandemic roiled global energy markets. Read sees the October 2021 restoration of that payout to late-2019 levels as a sign that management expects "normalized performance for the foreseeable future."
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.