Zhitong Finance APP learned that since three dissidents were elected on May 26ExxonMobil(XOM.US) shares have risen about 7% since the board of directors, in line with the overall performance of the energy sector and outperformedChevron(CVX.US) and Shell Oil Company (RDS.A.US) and other oil majors.JPMorgan ChaseAnalyst Phil Gresh believes ExxonMobil will continue to maintain its core asset base and maintain its Dividend coverage ratio below $50/barrel of Brent crude oil, repay debt faster and become an industry leader in the energy transition. Therefore, Gresh gave it an "overweight" rating and a target price of $76.Gresh expects ExxonMobil to cut its capital spending in the coming years and believes ExxonMobil should set a cap on capital spending of $20 billion, with $2 billion for energy transition projects, up from about $600 million currently. Gresh said ExxonMobil could sell more assets that are not productively productive, as well as several refineries, arguing it would "bring multiple benefits," including bringing cash to the balance sheet, simplifying the asset structure, and significantly reducing ESG. He believes the company has the ability to become a leader in low-carbon technology and apply low-carbon technologies at scale.
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