Shares Exxon Mobil Today, (NYSE:), shares are up 1% after RBC analyst Biraj Bokhataria upgraded to Sector Perform from Outperform with a new price target at $100.00 per share. This is an increase from the $90.00.

The analyst believes that “XOM will be one of the key beneficiaries of a tight refined oil products market.”

“In recent years, the market has focussed more on energy transition capex than core businesses, an area where XOM appeared to be ‘lagging’ peers. With the world (and energy policy) now turned on its head, we believe XOM has two key advantages relative to peers 1) it is the largest refiner among the majors; and 2) it screens well on upstream portfolio longevity, an area we expect to be under increased scrutiny in a high commodity price environment,” Borkhataria said in a client note.

Borkhataria believes that earnings momentum can be sustained by refining tailwinds. However, Chevron (NYSE:) Shares are being downgraded from Outperform to Sector Perform with a $165.00 target share price (up from $160.00).

An analyst views the current level of risk-reward as more balanced.

“CVX has rallied more than any other major in recent months, and we believe part of this has been a ‘safety trade’ alongside strong commodity prices… While we expect commodity prices to remain strong, we think the current valuation leaves less room for positive surprise, while headwinds with Tengizrealisations could weigh on earnings relative to peers,” Borkhataria added.

Chevron shares are down 0.4% at the moment

By Senad Karaahmetovic