Exxon Mobil shares gain the most in 20 months on Wednesday as RBC upgrades the stock to “Outperform”, boosts price target

Shares of Exxon Mobil Corporation (XOM) recorded their best trading session in 20 months on Wednesday after RBC Capital upgraded the stock to “Outperform” from “Sector Perform” previously, as the firm cited strong capital returns, including considerable dividend growth in the upcoming several years.

Exxon Mobil shares closed higher for the first time in the past four trading sessions in New York on Wednesday. It has also been the sharpest daily surge since September 28th 2016. The stock went up 3.93% ($3.08) to $81.50, after touching an intraday high at $81.66, or a price level not seen since May 23rd ($82.23).

Shares of Exxon Mobil Corporation have retreated 2.56% so far in 2018 compared with a 1.89% gain for the underlying index, S&P 500 (SPX).

In 2017, Exxon Mobil’s stock dropped 7.33%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

RBC Capital also raised its price target on the stock to $100 from $90 previously.

“A combination of disappointing results and the acceleration of its investment plans has led Exxon to underperform peers significantly recently”, RBC analyst Biraj Borkhataria wrote in a note to clients.

“From now to 2025, we see the potential for substantial dividend growth alongside superior returns, both of which appear underappreciated to us”, he added.

The analyst also projects that the industrial conglomerate will boost its dividend by 4% in 2019, followed by 5-percent annual increases beginning in 2020.

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Exxon Mobil’s stock price, have a median target of $85.00, with a high estimate of $110.00 and a low estimate of $70.00. The median estimate is a 4.29% surge compared to the closing price of $81.50 on May 30th.

The same media also reported that 13 out of 25 surveyed investment analysts had rated Exxon Mobil’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 4 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Exxon Mobil stock are presented as follows:

R1 – $81.72
R2 – $81.95
R3 (Range Resistance – Sell) – $82.17
R4 (Long Breakout) – $82.84
R5 (Breakout Target 1) – $83.63
R6 (Breakout Target 2) – $84.01

S1 – $81.28
S2 – $81.05
S3 (Range Support – Buy) – $80.83
S4 (Short Breakout) – $80.16
S5 (Breakout Target 1) – $79.37
S6 (Breakout Target 2) – $78.99

By using the traditional method of calculation, the weekly levels of importance for Exxon Mobil Corporation (XOM) are presented as follows:

Central Pivot Point – $79.82
R1 – $81.54
R2 – $84.38
R3 – $86.10
R4 – $87.83

S1 – $76.98
S2 – $75.26
S3 – $72.42
S4 – $69.59