UPDATE: Deutsche Bank Initiates Coverage On ExxonMobil

In a note released early Tuesday morning, Deutsche Bank analyst Ryan Todd initiated coverage on ExxonMobil (NYSE: XOM) with a Hold rating and announced a $105 price target.

Todd acknowledged that ExxonMobil has a "renewed shareholder focus" and reduced capital expenditures for 2014, but cautioned that the company has few momentum drivers post-2014, execution risks with recent project starts and is currently valued at a 30 percent premium to peers.

Looking at the metrics, Todd anticipates ExxonMobil's free cash flow yield will increase from 2.8 percent in 2013 to 4.4 percent in 2014. Additionally, he noted that the company's new project starts are leading to approximately 1.5 percent per year growth in cash flows per barrel of oil equivalent.

Finally, Todd noted that ExxonMobil has the highest exposure to U.S. natural gas among its peers, and the ongoing recovery of U.S. natural gas makes for a "significant wildcard" in the company's future.

Following the release of the note, shares of ExxonMobil are trading down ~0.5 percent in the pre-market.