Exxon Mobil: Buy, But Only If You Accept The Oil Shock Premium

Dhierin BechaiInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryExxon Mobil remains a buy, supported by a 20% premium to median EV/EBITDA and a $178.53 price target.Escalating Middle East tensions drive oil prices higher, benefiting XOM in the near term but raising long-term economic risks.Wall Street revisions show 10% revenue and 32% EPS upgrades for 2024, with continued positive momentum into 2027.XOM’s margins and capital intensity are set to improve, with low leverage supporting ongoing buybacks and sustainable dividend growth.Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » Bet_Noire/iStock via Getty Images Exxon Mobil (XOM) has gained 42.4% since my last report, in which I rated the stock a buy. Obviously, the buy rating has worked out extremely well, but the reality is also that I did notThis article was written byDhierin Bechai23.46K FollowersFollowDhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.