Two analysts boosted their ratings and price targets on Suncor Energy Inc. Monday, citing record-high crude oil prices and recent share underperformance.
FBR Capital Markets analyst Amir Arif upgraded the Canadian company to "Outperform" from "Market Perform" and raised his price target to $85 from $53.
The new target implies he expects shares to rise 48 percent over Thursday's $57.38 close.
"We expect second half (of 2008) operational improvements and positive earnings revisions in 2009 to be the key drivers for the stock," Arif said in a note to clients.
The new outlook comes as shares have dipped about 21 percent since May 20, a timeframe that has seen prices for crude oil skyrocket to nearly $150 per barrel.
The stock drop was due to lower-than-expected oil sands production, among other items, Arif said. Oil sands are a tar-like bitumen that are explored using mining techniques.
JPMorgan analyst Katherine Lucas Minyard boosted her rating to "Overweight" from "Neutral," and said the stock drop "far exceeds the financial impact of the operational issues driving negative sentiment."
A company representative was not immediately available for comment.
Shares of Suncor have risen about 6 percent so far this year.
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