The firm said it raised its rating on the integrated energy company as it expects an improvement in operating results for the second half of the year.
Stifel said higher consensus estimates and a growth in cash flow that can be used for buybacks also influenced the upgrade.
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Shares of Suncor Energy are up 0.63% to $40.02 this morning.
Separately, TheStreet Ratings team rates SUNCOR ENERGY INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNCOR ENERGY INC (SU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."