In the note, the analyst firm downgraded the energy sector to "marketweight" from "overweight," and said that it prefers big, lower beta stocks like Exxon Mobile for exposure in the sector. The downgrade follows OPEC's decision to maintain its production targets.
The firm said it expects Brent crude oil to be between $70 and $75 a barrel in 2015 due to OPEC's decision. Bank of America/Merrill Lynch said that WTI could fall as low as $50 in the coming months, warning that "volatility in oil prices translates to volatility in earnings."
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TheStreet Ratings team rates EXXON MOBIL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXXON MOBIL CORP (XOM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow."