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

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

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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.

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