With oil prices starting to gain momentum again, keep an eye on Exxon Mobil (XOM).
After a recent dip to $122.09, it appears to have caught strong support and could push aggressively higher again. All on growing concerns we’ll see more fighting between Israel and Iran, which could threaten Middle East crude oil flows. Helping, BMO Capital just raised its price target on XOM to $130 from $127, with a market perform rating.
Scotiabank analysts also raised its XOM price target to $145 from $129, with an outperform rating. The firm added that, “Exxon is more defensive in view of a ‘more bumpy oil price outlook for the next several years,’ and noted that ‘in periods of weaker commodity price environments, the stock historically outperformed the energy sector by a ‘wide margin,’” as noted by TheFly.com.
From its last traded price of $122.09, we’d like to see XOM run to $130 initially.