Bank of America Upgrades Exxon Mobil to Buy Amid Discounted Shares
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: CNBC
- Investment Opportunity: Bank of America upgraded Exxon Mobil from neutral to buy, setting a $154 price target that implies a 9% upside from Monday's close, indicating a favorable entry point for investors.
- Price Volatility: Exxon's shares have dropped nearly 17% in Q2, closely tracking oil price fluctuations since the onset of the Iran war on February 28, highlighting market sensitivity to geopolitical risks.
- Valuation Advantage: With a trailing P/E ratio of 23.8, significantly lower than Chevron's 31.3, Exxon presents an attractive valuation that may draw increased investor interest.
- Market Divergence: Among the 27 analysts covering Exxon, 13 have buy or strong buy ratings, while another 13 maintain hold ratings, indicating a split sentiment regarding Exxon's future performance.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 140.740
Low
114.00
Averages
132.17
High
158.00
Current: 140.740
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Need for Inventory Rebuilding: With the U.S. strategic oil reserves at their lowest since 1983, Chevron and ExxonMobil emphasize that rebuilding inventories is crucial for restoring supply-demand balance, likely extending the energy market recovery beyond current investor expectations.
- Increased Transportation Risks: While Iranian oil tankers are now moving through the Strait of Hormuz, this high-risk transportation will require time to assess the stability of the new agreement, potentially leading to exaggerated short-term market reactions to oil price fluctuations.
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