Credit Suisse Reiterates Underperform, Raises PT On Exxon Mobil On Full Valuation

In a report published Thursday, Credit Suisse analyst Edward Westlake reiterated an Underperform rating on

, and raised the price target from $82.00 to $85.00. In the report, Credit Suisse noted, "When we introduced the ‘Exxon/Volcker Rule,' we reprised 2010 work from Credit Suisse HOLT that showed that companies which invest with discipline and return cash to shareholders outperform in mature industries. In the oil patch, we argued keeping a pristine balance sheet also creates advantages, particularly at cyclical lows. We'd add another element to the Exxon/Volcker rule: those companies which need megaprojects to underpin their cash returns should also work harder to deliver them on time and budget (easier for us to write, than to achieve in practice). While US shale is ‘more resilient than some people think' (per XOM), shale alone cannot meet the energy demands of ‘3 billion more middle class by 2040'. Improving mega-project execution is a key imperative for the supermajors and the report card (outside XOM) remains poor." Exxon Mobil closed on Wednesday at $87.18.