Market Overview

UBS: Exxon And Chevron Are Trading At Historically High Valuations

Share:

In a pair of recent reports, analysts at UBS gave their take on Exxon Mobil Corporation (NYSE: XOM) and Chevron Corporation (NYSE: CVX) following Exxon's recent analyst meeting.

Overall, UBS remained neutral on both names.

Exxon

Exxon's recently-revealed capex budget for 2015 is about $34 billion, in line with expectations and longer-term guidance. The 2015 capex number represents about a 12 percent year-over-year (Y/Y) decline for the company.

On the production front, Exxon disclosed a target of 4.1 MMBoed for 2015, in line with previous guidance and a 2.2 percent increase over 2014 production levels. The only change to the company's production outlook was a slight adjustment in the mix, favoring more liquids over gas.

Related Link: Oppenheimer Says BP Is Worth $50/Share, But Why?

Analysts point out that Exxon's stock is currently trading at a premium to its historical valuation. Its relative price to earnings ratio (PE) of 1.0x versus the overall S&P is well above its historical 0.8x average.

Analysts have a price target of $92 on Exxon's stock.

Chevron

Chevron's analysts day is coming up on March 10. Analysts predict that the company will maintain its current guidance, including a 16 percent Y/Y reduction in capex to about $31 billion.

UBS is expecting Y/Y production growth of 0 to 3 percent and a long-term volume target of 3.1 MMBoed for Chevron.

Chevron's stock is also currently trading at a premium to its historical valuation relative to the S&P. Chevron's relative PE of 0.93x is well above its historical average of 0.66x.

Analysts have a price target of $108 on Chevron's stock.

Latest Ratings for XOM

DateFirmActionFromTo
Mar 2020Wells FargoMaintainsEqual-Weight
Mar 2020Morgan StanleyMaintainsEqual-Weight
Mar 2020UBSMaintainsNeutral

View More Analyst Ratings for XOM
View the Latest Analyst Ratings

 

Related Articles (CVX + XOM)

View Comments and Join the Discussion!

Posted-In: Analyst Color Price Target Commodities Markets Analyst Ratings

Latest Ratings

StockFirmActionPT
BBCanaccord GenuityMaintains6.0
ATROCanaccord GenuityMaintains14.0
GMCFRAMaintains20.0
ZGCitigroupMaintains44.0
XYLCitigroupMaintains68.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com