ExxonMobil: UBS raises target price

(CercleFinance.com) - On Thursday, UBS reiterated its Buy recommendation on ExxonMobil, while raising its target price for the stock from $133 to $150 (cp: $122, -0.
3%), in particular due to the strength of crude oil prices.

The analyst points out that the US oil group has already outperformed its sector index by 7% since the start of the year, and the rest of the integrated majors by 14%.

Following these favourable stockmarket performances, UBS considers that Exxon is still well positioned to take advantage of high oil prices and the current dynamism of refining margins.

The broker also appreciates the strength of its balance sheet (with debt representing just 3% of its market cap), as well as the prospect of increased share buybacks.

It adds that the buyout of Pioneer Natural Resources, as well as investments in low-carbon energy sources, should also support earnings growth and boost business prospects.


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