Analysts at RBC Capital upgraded Exxon Mobil Corporation (NYSE:XOM) to Sector Perform From Underperform and raised their price target on the company’s shares to $90 from $70. The upgrade on the company, which saw its shares price increase almost 20% since the start of this year, was a result of the brokerage believing its underperform rating is no longer warranted, given the overall tailwinds for the sector to likely outweigh company-specific factors in 2022.

According to the analysts, the company has moved from the brink of a potential dividend cut in the depths of the COVID-19 pandemic to a more balanced financial framework in 2021, and significant free cash flow potential in 2022, driven by booming commodity prices. The analysts admitted they were wrong on the company last year, and missed the powerful upgrades coming through, particularly for its Chemicals business.