UPDATE: Canaccord Genuity Initiates Exxon Mobil Corporation at Hold on Valuation
Canaccord Genuity initiated coverage on Exxon Mobil Corporation (NYSE: XOM) with a Hold rating and a $95.00 price target.
Canaccord Genuity said, "We are initiating coverage on ExxonMobil (“Exxon”) with a Hold rating, and a target price of $95. Exxon has an enviable reputation for operational excellence, financial strength and cash returns to shareholders, but we think these attributes are fully reflected in its premium valuations. Furthermore, we think Exxon faces challenges in three key areas: 1) we are unconvinced that its growth will match that of many of the others, 2) we expect much (but not all) of its lead vs the group on ROACE to be eroded away and 3) we do not expect the current level of cash distributions to shareholders to be sustainable beyond 2013 without Exxon continuing the present level of disposals."
Exxon Mobil Corporation closed at $88.59 on Thursday.
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