2 Energy Stocks That Wall Street Fell in Love With This Week
This week, Wall Street took a bullish view on two leading energy stocks: ExxonMobil (NYSE: XOM) and Devon Energy (NYSE: DVN). Here, two Motley Fool contributors take a closer look at Wall Street's opinions and why these energy stocks are a compelling way to energize investors' portfolios right now.
Scott Levine (ExxonMobil): Oil supermajor ExxonMobil has been the subject of two analysts' attention this week. On Monday, Mizuho Financial Group hiked its price target on ExxonMobil stock to $128 from $125 after it updated its multiyear outlook on energy prices. The following day, Morgan Stanley waxed bullish on ExxonMobil stock, resuming coverage on it with an overweight rating and assigning a $145 price target. Based on the stock's closing price of $117.87 on Thursday, Morgan Stanley's estimate implies an upside of 23%.
In addition to lauding the company's scale and its strong presence throughout the energy value chain, Morgan Stanley predicated its price target on the stock's valuation. Currently, shares of ExxonMobil trade at 14.4 times trailing earnings, which represents a discount to the S 500's P/E of 27.4.
Source Fool.com
