ANL 22.45 Decreased By ▼ -0.65 (-2.81%)
ASC 15.96 Decreased By ▼ -0.14 (-0.87%)
ASL 22.40 Increased By ▲ 0.15 (0.67%)
BOP 8.40 Decreased By ▼ -0.15 (-1.75%)
BYCO 8.80 Decreased By ▼ -0.16 (-1.79%)
FCCL 17.91 Decreased By ▼ -0.16 (-0.89%)
FFBL 24.95 Increased By ▲ 0.50 (2.04%)
FFL 17.32 Decreased By ▼ -0.58 (-3.24%)
FNEL 8.23 Decreased By ▼ -0.17 (-2.02%)
GGGL 21.43 Decreased By ▼ -0.66 (-2.99%)
GGL 41.20 Decreased By ▼ -1.98 (-4.59%)
HUMNL 7.05 Increased By ▲ 0.03 (0.43%)
JSCL 20.35 Decreased By ▼ -0.50 (-2.4%)
KAPCO 37.96 Increased By ▲ 0.06 (0.16%)
KEL 3.55 Decreased By ▼ -0.06 (-1.66%)
MDTL 2.99 Decreased By ▼ -0.01 (-0.33%)
MLCF 36.67 Increased By ▲ 0.37 (1.02%)
NETSOL 151.40 Decreased By ▼ -1.90 (-1.24%)
PACE 5.85 Decreased By ▼ -0.13 (-2.17%)
PAEL 31.10 Decreased By ▼ -0.10 (-0.32%)
PIBTL 9.31 Decreased By ▼ -0.05 (-0.53%)
POWER 7.91 Increased By ▲ 0.01 (0.13%)
PRL 20.25 Decreased By ▼ -0.60 (-2.88%)
PTC 10.34 Decreased By ▼ -0.06 (-0.58%)
SILK 1.71 Increased By ▲ 0.04 (2.4%)
SNGP 44.67 Increased By ▲ 1.48 (3.43%)
TELE 22.20 Increased By ▲ 0.14 (0.63%)
TRG 174.60 Increased By ▲ 1.10 (0.63%)
UNITY 35.60 Decreased By ▼ -0.60 (-1.66%)
WTL 3.18 Decreased By ▼ -0.07 (-2.15%)
BR100 4,961 Decreased By ▼ -18.06 (-0.36%)
BR30 24,423 Decreased By ▼ -37.02 (-0.15%)
KSE100 46,528 Decreased By ▼ -107.87 (-0.23%)
KSE30 18,422 Decreased By ▼ -58.36 (-0.32%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,246
4024hr
Pakistan Cases
1,226,008
2,16724hr
4.22% positivity
Sindh
450,787
Punjab
422,790
Balochistan
32,769
Islamabad
104,242
KPK
171,388
Business & Finance

J.P. Morgan upgrades Exxon to overweight for first time in seven years

  • Morgan Stanley on Monday upgraded Exxon's rating to overweight from equal-weight, saying it preferred the company to Chevron Corp for 2021.
  • We think that improved transparency, cost-reduction actions and increased investor pressure could all serve to push XOM to put up more consistent results
13 Jan 2021

J.P. Morgan analysts on Wednesday raised their rating on shares of Exxon Mobil to overweight, its first outright "buy" recommendation for the oil major in seven years, saying cuts in capital spending had put it on track for a stronger performance.

Analyst Phil Gresh, rated five for estimate accuracy, praised Exxon's promise to limit capex at $20 billion to $25 billion until 2025 and raised his price target for the stock from $50 to $56, above Tuesday's closing price of $47.87.

In a note to clients, Gresh and his colleagues also said their confidence in Exxon's ability to deliver on market expectations for earnings had grown after a series of results-day disappointments in recent years.

Morgan Stanley on Monday upgraded Exxon's rating to overweight from equal-weight, saying it preferred the company to Chevron Corp for 2021.

That contrasts with Exxon's symbolic demotion late last year out of the blue-chip Dow Jones Industrials Index. Chevron is still a part of the index.

"We think that improved transparency, cost-reduction actions and increased investor pressure could all serve to push XOM to put up more consistent results," the JPM team wrote.

Gresh also said the company's aggressive approach to capital and operational expenses, reinforced with downstream and chemicals markets recovery, should allow it to cover its dividend with Brent crude prices in the low-$50s.

After a hammering in February due to the coronavirus crisis and a standoff between Saudi Arabia and Russia, Brent hovered around $57 on Wednesday.

"As we sit here today, we think that the bar is materially lower, execution might finally be turning a corner, 2021 consensus is too low, the >7% dividend yield is more secure and valuation is more reasonable," J.P. Morgan said.

Exxon shares rose 0.8% to $48.27 in trading before the bell.

Comments

Comments are closed.