Exxon Mobil's stock surges after UBS raised rating, price target
Shares of Exxon Mobil Corp. surged 1.4% in morning trade Wednesday, after the oil exploration giant was upgraded at UBS, which cited valuation and expectations of an eventual recovery in oil prices. Analyst Jon Rigby raised his rating to neutral, after being at sell since Jan. 18, and nudged up his stock price target to $76 from $75. Although UBS lowered its outlook for third-quarter West-Texas Intermediate prices to $47 a barrel from $53 a barrel, but see a eventual recovery to "above consensus levels" over the medium and long term. The stock has tumbled 13.3% year to date, while the SPDR Energy Select Sector ETF has lost 14.2% and the Dow Jones Industrial Average has climbed 10.1%. "In the context of a company renowned for being at its most competitive in bottom of the cycle conditions this is notable," Rigby wrote in a note to clients.
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