Exxon Mobil 's new businesses aimed at lowering carbon-dioxide emissions are a long-term growth engine that will deliver earnings by the end of the decade, according to UBS.
UBS has a 12-month price target of $149 for Exxon, indicating about 22% upside from Friday's close of $121.79 per share.
The oil major is investing some $20 billion in a suite of emissions-reducing businesses including carbon capture and storage, biofuels, lithium and hydrogen through 2027.
Balanced growth Exxon's $20 billion investment in low-carbon businesses represents about 13% of the company's total capital expenditures through 2027.
The company's downstream refining and retail sales business should grow earnings by $4 billion starting in 2027, according to UBS.
Persons:
Josh Silverstein, Silverstein, Trump
Organizations:
Exxon Mobil, UBS, Exxon, U.S, Baytown Hydrogen
Locations:
U.S, Baytown, That's, Guyana