Exxon looks fully valued, Citigroup says as it downgrades shares

|By:, SA News Editor

Exxon Mobil (XOM -1.1%) has gained 14% in the past 12 months, and the strong performance prompts Citigroup’s Faisel Kahn to downgrade shares to Neutral from Buy.

XOM has been rising on expectations for a recovery from a difficult year for production and a record level of refining maintenance that weighed on 2013 earnings, but the firm believes this is now largely priced into the stock.

However, Citi raises its price targets for XOM, Chevron (CVX -0.7%), ConocoPhillips (COP +0.1%) and Occidental Petroleum (OXY -0.2%) largely based on a reduction of its cost of capital assumptions and the approaching start-up of many large scale upstream projects.