BofA Securities upgraded ExxonMobil (NYSE: XOM) to "Buy" from "Neutral." The firm established a price target of $154.00.
Analyst Jean Ann Salisbury notes the stock trades at a lower price than before the recent conflict with Iran. This is despite the conflict's net upside for oil producers.
BofA's analysis suggests ExxonMobil's current share price factors in a long-term oil price of just $65 per barrel. This presents low fundamental downside.
The firm views the stock as a "free call option." They argue that if the recent U.S.-Iran peace deal fails and oil prices rebound, the stock is positioned to move higher.