Shares of Exxon Mobil Corp. hit an all-time high Monday after a Goldman Sachs analyst raised his investment rating and price target grade on its stock, citing possible growth of its oil and gas production business.
THE SPARK: Analyst Arjun Murti upgraded Exxon's stock rating to a "Buy" from "Neutral." He also raised the price 12-month price target to $109 per share from $96.
THE BACKGROUND: Exxon, which is based in Irving, Texas, makes most of its profit from producing oil and natural gas. In October, the company said that oil and gas production rose slightly in its third quarter after falling for nine straight quarters before that.
ANALYSIS: Besides a possible increase in oil and gas production, Murti said that Exxon's stock makes a good buy because it is well positioned against a possible drop in global oil prices. "Exxon Mobil tends to be one of the most defensive investments in the event oil prices decline," Murti said in a note to clients.
A representative from Exxon did not immediately respond to a request for comment.
SHARE ACTION: Up $2.44, or 2.6 percent, to $97.76 in afternoon trading Monday. Earlier, Exxon's shares hit what FactSet says was an all-time high of $98.88.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Original headline: Exxon shares hit all-time high on Goldman upgrade
Most Popular Stories
- Prosecutor to Investigate Walmart Police Shooting
- GM to Announce New Jobs in Tennessee
- Mark Sanchez Suddenly a Hot QB Commodity
- Smith & Wesson Misses Target
- Emirates Hit Libyan Targets With Airstrikes
- Michael Brown Funeral: Can Americans Change the Script of Violence?
- Marco Rubio Warns Obama on Deportations
- American Killed With ISIS Fighters in Syria
- Surf's Up! SoCal Prepares for Big Storm Surf
- Ford Hires 300 at Louisville Lincoln Plant