Blue Chip Boosted by Carbon Capture Collaboration

SunTrust Robinson initiated coverage with a "hold" rating

Deputy Editor
Jul 24, 2020 at 10:29 AM
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The shares of blue-chip oil producer Exxon Mobil Corporation (NYSE:XOM) are up 1.1% at $44.16 at last check, after SunTrust Robinson initiated coverage with a "hold" rating, and a price target of $41. Furthermore, the company announced a collaboration with scientists from University of California, Berkeley and Lawrence Berkeley National Laboratory on a new material that can enhance carbon capture technology. 

On the charts, XOM is seeing familiar resistance around the $45 region, with pressure overhead at the 30-day moving average. The 40-day, which lead the security higher back in May, is also looming overhead as potential resistance. Year-to-date, the equity is down 37.4%. 

Coming into today, 14 out of the 18 analysts in coverage already sport a tepid "hold" rating, with one at a "strong buy" and three on the opposing end with a "strong sell." Meanwhile, the consensus 12-month target price of $47.38 is an 8.4% premium to last night's close. 

The options pits are looking a little more bullish, with 2.95 calls traded for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 65% of readings from the past year, suggesting long calls are getting more attention than usual. 

 

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