Truist upgrades Exxon Mobil to Buy on Pioneer deal benefits

Truist upgraded Exxon Mobil (XOM) to Buy from Hold with a price target of $131, up from $100, citing longer term benefits from the company’s acquisition of Pioneer Natural Resources (PXD). While the addition of the new company does not result in material near-term accretion, future years “could see a more sizable benefit,” the analyst tells investors in a research note. The firm believes the pro-forma company deserves a premium earnings multiple and cash-flow yield given its scale and likely well productivity that is “second to none.”