BENGALURU (Jan 13): JP Morgan was the latest major US investment bank to turn positive on Exxon Mobil on Wednesday, just months after its removal from the blue-chip Dow Jones Industrial Average capped a catastrophic year for America's major oil producers. The shift to an "overweight" rating by the bank was the first time in seven years that JP Morgan had outright recommended investors bet on Exxon, dating back to the drop in oil prices below US$100 in mid-2014.
Shares of Exxon Mobil Corp. rose Wednesday, putting them on track for the longest win streak in 16 months, after J.P. Morgan analyst Phil Gresh turned bullish on the oil giant for the first time, citing an improved financial outlook and more reasonable valuation.
Exxon Mobil Corporation (NYSE:XOM) - 4 Reasons Why JPMorgan Upgraded ExxonMobil benzinga.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from benzinga.com Daily Mail and Mail on Sunday newspapers.
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The outlook for commodities has “significantly improved” in recent months, according to Scotia Capital analyst Orest Wowkodaw, who thinks the “risk-reward proposition for the equities remains attractive despite the impressive performance post the COVID-19 pandemic collapse in early 2020.”
“Although most of the world continues to battle the COVID-19 pandemic, the recent development of several vaccines and clarity on the governing U.S. administration has significantly improved the outlook (and sentiment) for commodities,” he said. “There is little doubt that the remarkable Chinese economic recovery beginning in Q2/20 rescued most com