Zhitong Finance APP learned that since the election of three dissidents on May 26ExxonMobil(XOM.US) board member, the company's shares have gained about 7% since, in line with the overall performance of the energy sector and outperformingChevron(CVX.US) and oil majors such as Shell Oil Corp. (RDS.A.US).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, paying off debt faster and becoming an industry leader in the energy transition. Therefore, Gresh assigns it an "Overweight" rating with a $76 price target.Gresh expects ExxonMobil to cut its capex in the coming years and believes ExxonMobil should cap capex at $20 billion, with $2 billion for energy transition projects, up from about $600 million today. Gresh said ExxonMobil could sell more assets that are not producing efficiently, as well as several refineries, arguing that it would "deliver several benefits," including bringing cash to the balance sheet, streamlining the asset structure, and significantly reducing ESG. He sees the company as capable of becoming a leader in low-carbon technologies and applying them at scale.
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