Exxon Mobil Is This Analyst's Top Pick, Citing Premium Valuation Relative To Peers
Portfolio Pulse from Nabaparna Bhattacharya
Piper Sandler analyst Ryan M. Todd has reiterated an Overweight rating on Exxon Mobil Corporation (XOM) with a price target of $136, citing the company's efforts to improve its portfolio for profitability and resilience. Exxon Mobil's focus on assets with low costs and high quality, structural reorganizations, and cost reductions contribute to its position as a top pick among integrated oil companies. The analyst expects Exxon Mobil to maintain a valuation premium over its peers, including Chevron Corporation (CVX), due to its lower capital reinvestment and geopolitical risks. FY23 EPS is estimated at $9.66 with an EBITDA of $76.447 billion, and FY24 EPS at $11.69 with an EBITDA of $88.214 billion. XOM shares were up by 0.81% to $103.79 in the last check.
November 10, 2023 | 7:41 pm
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POSITIVE IMPACT
Piper Sandler analyst Ryan M. Todd has given Exxon Mobil a positive outlook with an Overweight rating and a price target of $136, emphasizing the company's strategic portfolio management and potential for sustained valuation premium over peers.
The positive rating and high price target set by the analyst, along with the strategic improvements and cost reductions made by Exxon Mobil, suggest a strong potential for stock price appreciation in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Chevron Corporation is mentioned as having higher capital reinvestment and geopolitical risks compared to Exxon Mobil, which may impact its relative valuation and investor perception in the short term.
The comparison made by the analyst suggests that Chevron may be at a disadvantage relative to Exxon Mobil due to higher risks, which could lead to a negative perception among investors and possibly a decrease in stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60