Bank of America Upgrades Exxon to Buy With $154 Target as Shares Trade 17% Lower in Q2
Updated
Updated · CNBC · Jun 16
Bank of America Upgrades Exxon to Buy With $154 Target as Shares Trade 17% Lower in Q2
3 articles · Updated · CNBC · Jun 16
Summary
Bank of America lifted Exxon Mobil to buy from neutral and set a $154 price target, implying about 9% upside from Monday's close.
A nearly 17% second-quarter slide left Exxon trading at what the bank called a discount, with limited fundamental downside after a recent pullback.
Monday's 4% drop followed a U.S. signal that it had reached an agreement to end the Iran war, even though the analyst said Exxon still has upside whether tensions ease or flare again.
Exxon trades at 23.8 times trailing earnings versus Chevron's 31.3, while Wall Street remains split: 13 analysts rate it buy or strong buy, 13 hold and one underperform.
Why is Exxon's stock being upgraded just as a potential peace deal threatens to lower oil prices?
Exxon vs. Chevron: Is massive cash flow worth the volatility, or is stability the smarter investment now?
ExxonMobil Gets BofA "Buy" Rating as 2030 Permian Guidance Rises and Middle East Risks Loom
Overview
On June 16, 2026, Bank of America upgraded ExxonMobil to a 'Buy' rating, highlighting the company's attractive valuation, strong integrated business model, and improved U.S. production guidance. ExxonMobil raised its Permian Basin production target for 2030 to 2.5 million barrels per day, aiming to achieve this growth without increasing capital spending, which shows operational efficiency. The company’s latent capacity in the Middle East also adds future growth potential. Despite ongoing geopolitical tensions in the Middle East affecting global commodity markets, ExxonMobil’s strategic strengths and disciplined approach position it well for resilience and continued profitability.