Exxon Mobil ‘s divergent corporate strategy has put it in position to capitalize on the jump in oil prices, according to Credit Suisse. Analyst Manav Gupta upgraded Exxon Mobil to outperform from neutral, saying in a note to clients Tuesday that the oil giant’s continued investment in fossil fuels will pay off for investors in an era of higher prices. “XOM always believed that the world will need fossil fuels for much longer and in the medium term demand for oil and gas will be increasing not contracting. As a result, XOM has continued to invest in some of the most attractive Oil & Gas projects globally,” Gupta wrote. Credit Suisse also hiked its price target on Exxon to $125 per share, which is 45% above where the stock closed on Friday. Exxon is also investing in its refining capacity, which is at the front end of a highly profitable stretch, according to Credit Suisse. “XOM’s reported net income of $1.3Bn and $2.1Bn from refining in 2020 and 2021, which were pandemic years. We estimate with strong rebound in refining margins, XOM could see refining net income of $7.5Bn in 2022 and $5.5Bn in 2023,” Gupta wrote. Energy stocks have been big winners in 2022, and Exxon is no exception, gaining more than 40% year to date. However, shares of Exxon are down 10% in June as the latest leg of the market sell-off has seen extremely broad selling. Oil prices, which have been driven higher by Russia’s invasion of Ukraine, have also backed off their highs as investors grow worried about a potential recession in the U.S. and Europe. — CNBC’s Michael Bloom contributed to this report.