Exxon Mobil Stock Best To Own For Next 5 Years, Says UBS: Retail’s Unconvinced
By Stocktwits Inc | First Published Nov 27, 2024, 6:50 PM ISTThe brokerage has a 12-month price target of $149 for the stock, implying a 26% upside from current levels.
UBS has reportedly said that oil giant Exxon Mobil Corp ($XOM) is the best stock to own for the next five years, driven by its new businesses aimed at reducing carbon dioxide emissions.
“XOM’s growing Low Carbon Business is one of the 5 key drivers behind our view that XOM is the best stock across our coverage to own for the next 5 years,” wrote UBS analyst Josh Silverstein, according to a CNBC report.
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The brokerage has a 12-month price target of $149 for the stock, implying a 26% upside from current levels.
The company anticipates a 15% return on investment, which should lead to $1.5 billion or more in earnings by the end of the decade, the brokerage reportedly said.
The brokerage also noted that Exxon has invested over $100 billion in a carbon capture and storage hub along the Gulf Coast with the aim of removing 100 million metric tons of emissions per year from several industrial customers by 2040.
Meanwhile, RBC Capital has reportedly lowered its price target on Exxon Mobil to $115 from $120, while keeping a ‘Sector Perform’ rating on the shares.
RBC believes that although the company has outperformed most energy names this year, the brokerage sees better risk-reward elsewhere in the sector with downstream margins looking soft going into 2025 and the prospect for higher capital spending over the medium term.
Retail sentiment on Stocktwits continued to trend in the ‘bearish’ territory (43/100), accompanied by high message volume.
Shares of Exxon Mobil were trading marginally in the green in Wednesday’s pre-market session. The stock is up over 15% on a year-to-date-basis.
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