UPDATE: Credit Suisse Reiterates On Exxon Mobil On Positive Outlook
In a report published Monday, Credit Suisse analyst Edward Westlake reiterated a Neutral rating on Exxon Mobil Corporation (NYSE: XOM), and raised the price target from $95.00 to $100.00.
In the report, Credit Suisse noted, “Over the summer, we outlined how different it was to be on the road with a Major that has completed its latest suite of mega projects and was now enjoying the cashflow delivery and deferred maintenance capital that long lived assets provide. On the cashflow side, XOM's new projects are delivering cash margin expansion. In Angola, PSC cost recovery makes projects highly cash generative in early life, with fading cash flow over time. However, the uplift from improved fiscals and better gas prices (PLNG) than the current portfolio mean that some of the improved cash generation in 3Q results may be here to stay. On the capex side of the equation, XOM is in the luxurious position of having a high share of long lived upstream assets (e.g. global LNG, Heavy Oil) and also a higher share of long lived downstream assets. Together with superior project execution, which might be 20%+ better than peers, it is easy to see how XOM delivers superior free cash generation. With a lower cost of capital, this supports a higher multiple. We raise our EPS 2-3% (see Exhibit 1) and our target price to $100/sh from $95/sh.”
Exxon Mobil closed on Friday at $96.71.
Latest Ratings for XOM
Date | Firm | Action | From | To |
---|---|---|---|---|
Mar 2022 | Wells Fargo | Maintains | Overweight | |
Mar 2022 | MKM Partners | Maintains | Buy | |
Mar 2022 | BMO Capital | Maintains | Market Perform |
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