And the Pies' Hall of Famer believes veteran Alan Didak shouldn't only be part of the club's September campaign but also play on next season.
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Licuria says the team unity that drove the club to a premiership in 2010 could again prove a decisive factor in another flag tilt.
"I think they can (win the premiership), even though they'll have to come from outside the top four to do it. They've played some really good footy over the past month or so," he told AFL.com.au.
"You’d back them to win their first final and then they just have to knock over one of the top four sides, which they've done before, and they’re right in the hunt.
A key member of Collingwood's 2002 and 2003 Grand Final sides, claiming his second successive club best and fairest in 2002, Licuria sees similarities between the spirit that was engendered among Collingwood sides of the early 2000s and the current team.
"Back in '02-'03, we didn’t win a flag but I reckon we were about as tight as a team could be. It wasn't until 2009-10 that I saw that happening again (at Collingwood), and they did win a flag. A lot of those guys are still around and instilling that into the other new guys that have come onto the list," he said.
"When they won the flag in 2010 and played off again the next year, they had a really powerful formula of closeness and bonding and teamwork where blokes played their roles and were selfless, and I reckon it's still there.
"That's why I think the Pies are a serious threat this year. They could be the sleeping giant."
A former player development manager and assistant coach at Collingwood, Licuria is also continually impressed with the Pies' ability to "bring on" quality young players and bring about generational change while remaining a premiership contender.
"For a while now the Pies have been one of the best, if not the best, in terms of innovation in their development program," he said. "It puts pressure on the senior guys to perform each week, and that's really healthy."
Didak, 30, is one such player under pressure to retain his spot. Due to injury and form issues, he has played just 15 games over the past two seasons, and only four this year. And in his past 29 games he has kicked just 11 goals.
But the 217-gamer has performed well in his two games back in the Pies' line-up, tallying 39 disposals and 2.2 in less than six quarters, and Licuria has backed his former teammate to play on next season.
"I'm a little bit biased but I still think 'Dids' has got a lot to offer, so he should keep going," Licuria said. "I hope he can stay on at Collingwood, but there might not be a spot for him there so there might be an opportunity for him somewhere else like GWS.
"He's different to the way I was, for example. When I lost what little pace I had and I lost my agility, I was done.
"But Dids is such a classy player that he only needs to get the ball 10 times and he's going to hurt you. His decision-making and kicking is still as sharp as ever, he still reads the ball well, and his opponents need to respect him so you need to put a good opponent on him."
Twitter: @AFL_BenCollins