UPDATE: Jefferies Upgrades ExxonMobil (XOM) to Hold on Less Likely Dividend Cut
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Jefferies analyst Jason Gammel upgraded ExxonMobil (NYSE: XOM) from Underperform to Hold with a price target of $55.00 (from $45.00) on an increase the Brent oil price forecast to $60/bbl for 2021-24E and $58/bbl long term (from $54/bbl and $55/bbl respectively). Despite the improvement, the analyst remains at Hold seeing better opportunities in the space.
The analyst stated "The improved macro environment makes Exxon's shareholder remuneration more sustainable, removing a key component of our bearish investment case. Even after this upgrade, as highlighted in a recent note, we continue to see CVX's investment case as more compelling, combining a higher FCF yield with a higher upstream growth potential (3-4% production CAGR through 2025)".
Shares of ExxonMobil closed at $56.00 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
Related EntitiesJefferies & Co, Dividend
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