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ExxonMobil Still a Good Investment, Analyst Says

Wednesday, 30 May 2007 | 9:25 AM ET

ExxonMobil, which holds its annual meeting today, will attempt to allay shareholder concernsabout environmental and governance issues, including whether Chairman Rex Tillerson should be reelected.

One analyst said that despite public concern for the environment, which he attributes to higher energy prices and surging gas prices, Exxon's primary responsibility of making money for investors in the long term hasn't changed.

One reason ExxonMobil is a strong investment is because it will continue to see more upside to its current price target of $90 a share from a 12-month standpoint, said Robert Kessler of Simmons & Co. on "Squawk Box."

ExxonMobil Shareholder Meeting
As shareholders of the oil giant meet later today, insight on what this will mean for investors, with Robert Kessler, Simmons & Company International analyst; CNBC's Mary Thompson & Carl Quintanilla

As for reinvesting its cash, which has amounted to $35 billion, Kessler said that ExxonMobil is in a challenging environment.

"In the short term, the cash continues to build. In the long term, more distribution of cash, and potentially an acquisition," Kessler said.

By acquisition, he means big, and by that, he means Shell , a worldwide group of oil, gas, and petroleum companies.

However, Kessler doesn't see this acquisition happening right away.

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