Goldman upgrades Exxon after years of underperformance, says shares are cheap

A view of the Exxon Mobil refinery in Baytown, Texas.
Jessica Rinaldi | Reuters

(This story is for CNBC PRO subscribers only.)

For the first time since 2016, Goldman Sachs is recommending that investors buy Exxon shares.

The firm upgraded the oil giant to a buy rating on Tuesday evening, highlighting Exxon's capital and cost reductions, as well as improving free cash flow. Goldman has a new 12-month price target of $52 on the stock, representing a 21% rally from Tuesday's closing price.

More In Street Calls

CNBC ProDeutsche Bank downgrades Stanley Black & Decker as power tools maker's earnings come under pressure
CNBC ProNow's the time to buy 'well-oiled machine' Nasdaq exchange, Rosenblatt says
CNBC ProIs 'super cheap' Meta a buy or a miss? Here's what top tech investor Paul Meeks says