Exxon Mobil’s stock bounces after Gerdes gets bullish, citing valuation and growth drivers in Permian Basin, Guyana

Shares of Exxon Mobil Corp.
XOM,
-1.16%
bounced 0.9% in premarket trading Friday, after the oil giant was upgraded at Gerdes Energy Research, citing valuation after the stock’s recent selloff. Exxon’s stock has tumbled 14.8% since closing at a record $120.20 on Sept. 27 to close Thursday at a four-month low. The selloff came as crude oil futures
CL.1,
+1.70%
plunged 22.2% over the same time, before bouncing 1.2% on Friday. Gerdes’ analyst John Gerdes raised his rating to buy after being at neutral since Sept. 11, but kept his stock price target at $123, which implies 20% upside from Thursday’s close. He said that upside, and growth drivers via Exxon’s moves to scale in the Permian Basin through the acquisition of Pioneer Natural Resources Co.
PXD,
-1.21%
and Guyana are reasons behind him turning back to bullish. Year to date, Exxon’s stock has slipped 7.1% through Thursday while the S&P 500
SPX,
+0.12%
has advanced 17.4%. Crude oil futures have shed 8.1% this year.