Exxon Mobil looks cheap even after the stock’s surge this year, according to Evercore ISI. Analyst Stephen Richardson upgraded the energy stock to outperform from in line. The analyst also hiked his price target on Exxon Mobil to $120 per share from $88, implying upside of more than 21% from Monday’s close. Exxon shares have surged 61.5% in 2022, as global economies grapple with a mismatch between energy supply and demand — which has led to a sharp jump in oil prices. As a result, the S & P 500 energy sector is up more than 2022. Still, Richardson said Exxon Mobil shares are trading at a more than 20% discount to historical levels. “Considering the longer energy cycle ahead and the stronger earnings (rising returns) profile at XOM (and Integrated Oil peers) we do think a consideration of the ‘right’ multiple is worthwhile,” he said in a note. Exxon’s path to doubling its earnings is a key factor in the case for investing in the stock, Richardson wrote. He also sees longer-term growth opportunities for the company in Guyana, the Permian basin, and Brazil. “We see the earnings plan as highly probable,” he wrote. “[Return on equity employed] will rise to 15% in 2025 and 17% in 2027 according to XOM. If financial performance improves as XOM envisions, free cash flow and cash returned to shareholders through dividends and share repurchases will be significant during the next 5 years.” — CNBC’s Michael Bloom contributed reporting