On Thursday, UBS reiterated its Buy recommendation on ExxonMobil, while raising its price target on the stock from $133 to $150, due in particular to the strength of crude oil prices.

The analyst points out that the American oil group has already outperformed its sector index by 7% since the start of the year, and the rest of the integrated majors by 14%.

Following these favorable stock market performances, UBS considers that Exxon is still well positioned to take advantage of high oil prices and the current dynamism of refining margins.

The intermediary also appreciates the strength of its balance sheet (with debt representing only 3% of market capitalization), as well as the prospect of increased share buybacks.

It adds that the buyout of Pioneer Natural Resources, as well as investments in low-carbon energy sources, should also support earnings growth and boost business prospects.

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