Is It Time To Buy Exxon Mobil?
Iain Reid from BMO Capital recently upgraded Exxon Mobil Corporation (NYSE: XOM) to Market Perform and raised the price target to $95. Reid argued Exxon’s “strength in downstream business” and “better positioning than peers” as the reason for the upgrade.
CNBC’s Fast Money trader Stephanie Link and Nili Gilbert, co-founder of Matarin Capital, recently provided their perspectives on this upgrade, in addition to discussing whether it’s time to buy Exxon.
“It's [Exxon] gone down the least of the big ones and so I kind of get that [BMO’s upgrade] and at the same time its off 17 percent so, you are getting a better deal. It yields 3.2 percent, but I still think that capex budgets need to come down and earnings estimates need to come down,” Link said.
Link Discusses Similar Companies
“There are a lot of other companies out there that they are doing kind of self-help things that are down even more,” she continued. “And when I say that, ConocoPhillips or Royal Dutch Shell or Marathon Oil, these companies are down 25-30 percent and they yield pretty attractive levels.”
“I think that there are better values,” Link said.
Gilbert Says Exxon Helps Spread In Industries
“For us, maintaining a balance across energy has been really important,” Gilbert said.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.