UPDATE: Jefferies Upgrades ExxonMobil (XOM) to Hold on Less Likely Dividend Cut

April 11, 2021 11:57 PM EDT
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Price: $62.19 +2.34%

Rating Summary:
    11 Buy, 21 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 19 | Down: 9 | New: 59
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(Updated - April 12, 2021 8:33 AM EDT)

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)".

For an analyst ratings summary and ratings history on ExxonMobil click here. For more ratings news on ExxonMobil click here.

Shares of ExxonMobil closed at $56.00 yesterday.

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