We have raised our target price on the XOM shares to $104. While the shares have risen strongly over the past year, we see further upside in 2022. We expect Exxon to benefit from strong energy market fundamentals, as well as from its improving balance sheet, reduced capital spending, and higher free cash flow. In addition, we look for the company to raise its dividend and pay down debt. Exxon is also taking steps to address climate change, and continues to target net-zero greenhouse gas emissions by 2050. Management said that it would reach its 2025 emissions reduction targets ahead of schedule (by the end of 2022), and that it would build a new hydrogen plant in Baytown, Texas. In all, it has pledged to spend $15 billion on low-emission projects through 2027.