Barclays on Tuesday upgraded shares of Exxon Mobil to overweight, saying the oil major's stock price appears to have bottomed and it now looks attractive compared with its peers and the broader market's payout to shareholders.
The bank maintained its $94 price target on Exxon's stock, compared with an average target price of $85.94, according to Factset. Shares closed at $80.16 on Monday, about a dollar above the 52-week low of $79.26 on June 2. On Tuesday, it was up slightly, at $80.48.
"In our view, the high-$70s to low-$80s recent share price range reflects a durable support level — from a fundamental and technical perspective," Barclays said.
The bank boiled down its view to Exxon's "leading near-term position" in the low commodity price environment and its potential for upside after a period of underperformance. Barclays also cited Exxon's long-term focus on developing liquefied natural gas facilities and increased diversification into petrochemicals, which it says boosts the oil giant's valuation in a number possible future scenarios.
Exxon has lagged its peers by about 4 percent following surprise write downs of certain assets this year, Barclays noted.