UPDATE: Evercore ISI Upgrades ExxonMobil (XOM) to Outperform

Evercore ISI analyst Kirk Materne upgraded ExxonMobil (NYSE: XOM) from In Line to Outperform with a price target of $120.00 (from $88.00).

The analyst comments "XOM trades at a 7.2% total shareholder yield (based on current dividend + buyback expectations of $15 Bn in 2022). Current valuation is at a >20% discount to historical levels (2011-14 average) while we see returns rising both secularly at the industry level but for XOM specifically. We see industry leading ROCE target of 15% by 2025 and 17% by 2027 @$60 real Brent attainable driving valuation higher. Longterm earnings growth should be driven by upstream upgrading (50% volumes from key growth areas: Guyana, Permian, Brazil and LNG), doubling high-value, high-performance products volume (performance chemicals, lubricants and biofuels), as well as cost reductions ($5 Bn of structural cost improvements secured, $4 Bn to come). Short-term catalyst includes upside revision to 2Q and FY2022 earnings driven by rising oil and gas prices in addition to record refining margins. XOM has the most exposure to downstream amongst the Big Oils."

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 $98.84 yesterday.

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