Exxon Mobil (XOM) Reaffirmed Buy by UBS on Underrated Refining Capabilities

Exxon Mobil Corporation (NYSE:XOM) ranks among the most active blue chip stocks to buy now. On January 9, UBS reaffirmed its Buy rating and $145 price target for Exxon Mobil Corporation (NYSE:XOM), citing the company’s underrated global refining capabilities. Exxon Mobil Corporation (NYSE:XOM) holds roughly 4.1 million barrels per day of refining capacity over 15 refineries around the globe, with four in the US and 11 with ownership equity.

justin-c-6bsVqTJna_o-unsplash

UBS notes that these refining facilities offer financial stability and act as an intrinsic hedge against falling crude prices, noting that every $1 per barrel improvement in prospective refining margin contributes $800 million to ExxonMobil’s energy-related earnings.

The firm anticipates that indicative refining margins in the first half of 2026 will be roughly $3 per barrel more than in the first half of 2025, resulting in an anticipated FCF as high as $5,005 million for ExxonMobil’s energy products division from 2026 to 2029.

Exxon Mobil Corporation (NYSE:XOM) is an integrated energy company that explores for, produces, and refines oil and natural gas, while also operating a large chemical business.

While we acknowledge the potential of XOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XOM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.