Mizuho analysts raised ExxonMobil’s rating and downgraded others
2023.01.10 09:14
Mizuho analysts raised ExxonMobil’s rating and downgraded others
By Ray Johnson
Budrigannews.com – Mizuho analysts assumed that research coverage of U.S. oil and gas stocks had a positive bias despite outperformance in 2022.
Two stocks were upgraded by the company: ExxonMobil (NYSE:) however, primarily based on valuation, downgraded several others. to NYSE’s HF Sinclair: to Purchase from Neutral The first option has a price target of $140 per share, implying a potential upside of nearly 30%.
“It is difficult to come up with a realistic scenario in which the company will not be a leader in generating cash for the next three to five years. Despite the fact that we have included a more conservative outlook for earnings and cash flows than management and consensus,” the company’s statement states. “This is not reflected in the modest discount to peers based on our FCF/EV estimates,” the analysts stated in a client note.
Their enthusiasm for Chevron (NYSE:) is lower. which is presumptively neutral (Buy in the prior rating).
“The company was a leader in cash return throughout the downturn between 2019 and 2022.” “The company has one of the strongest balance sheets in our Energy coverage.” “With 1) the stock trading at a premium on FCF/EV, 2) potential capital efficiency headwinds in the Permian, and 3) limited line of sight on long-term reserves, we take a more neutral view of the investment case and would look for a better entry point,” they wrote in a separate note.
