After a rough couple of years in the oil market, it may finally be time to buy Chevron Corporation CVX 1.26%. Simmons & Company analyst Guy Baber has upgraded the stock from Neutral to Overweight ahead of what the firm sees as a long-term oil price recovery.

Although Chevron doesn’t offer investors the value Royal Dutch Shell plc (ADR) (NYSE: RDS-A) offers at its current share price, Baber sees Chevron as a long-term buy.

“CVX offers impressive financial resilience and dividend sustainability alongside leading operational leverage to eventual oil price normalization and a seemingly more sustainable business model,” Baber explains.

He notes that oil major stocks aren’t cheap based on conventional metrics, but Simmons does see pockets of value.

The firm names Suncor Energy Inc. (USA) SU 1.38% as its top overall pick. Baber believes Suncor’s ability to generate FCF, as well as the stocks relative underperformance in 2016, has it set up best headed into 2017.

Simmons is also Overweight on Marathon Oil Corporation MRO 3.36%, its top dividend E&P stock pick.

When it comes to value, Baber names…

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