Shares of Exxon Mobil Corp. XOM bounced 0.9% in premarket trading Friday, after the oil giant was upgraded at Gerdes Energy Research, citing valuation after the stock’s recent selloff. Exxon’s stock has tumbled 14.8% since closing at a record $120.20 on Sept. 27 to close Thursday at a four-month low. The selloff came as crude oil futures CL.1 plunged 22.2% over the same time, before bouncing 1.2% on Friday. Gerdes’ analyst John Gerdes raised his rating to buy after being at neutral since Sept. 11, but kept his stock price target at $123, which implies 20% upside from Thursday’s close. He said that upside, and growth drivers via Exxon’s moves to scale in the Permian Basin through the acquisition of Pioneer Natural Resources Co. PXD and Guyana are reasons behind him turning back to bullish. Year to date, Exxon’s stock has slipped 7.1% through Thursday while the S&P 500 SPX has advanced 17.4%. Crude oil futures have shed 8.1% this year.
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