Brocker.Org: UBS downgrades Exxon to market on stretched valuations, predicts eleven% pullback


UBS on Thursday downgraded Exxon Mobil to market from neutral, citing prolonged valuations and the likely for earnings to disappoint.

At the latest degrees, analysts at UBS say shares of Exxon trade at a fifty percent high quality to its friends on a rate-to-earnings basis and an eighteen percent high quality to the S&P 500.

“We estimate XOM is now investing at 12.4x and eleven.6x our 2017 and 2018 DACF [personal debt-adjusted hard cash stream] estimates, respectively, perfectly higher than its historic regular of 8.2x and the global integrated regular of 7.2x and 6.4x,” fairness analyst William Featherston wrote in a investigation take note.