On Monday, ExxonMobil (NYSE:XOM) saw its price target increased by Jefferies from $135.00 to $140.00, with a maintained Buy rating. The adjustment comes after ExxonMobil issued its 8-K guidance for the first quarter of 2024, which indicated a net income projection of approximately $8.7 billion. The analyst from Jefferies expects ExxonMobil's results to align with this guidance and consensus estimates of around $8.6 billion.
The analyst noted that ExxonMobil's share repurchase rate has escalated to about $17 billion since the shareholder vote on February 7th, which had previously imposed limitations on buybacks. This rate is anticipated to rise to roughly $20 billion following the closure of the Pioneer Natural Resources (NYSE:PXD) acquisition.
Despite the market's focus on the PXD deal, Federal Trade Commission inquiries, and ongoing arbitration with Chevron (NYSE:CVX), there is also an interest in ExxonMobil's outlook for refining and chemical margins as part of the first-quarter 2024 results.
Jefferies has updated its estimates to reflect Henry Hub (HH) and West Texas Intermediate (WTI) prices of $2.39 and $3.50 per thousand cubic feet (mcf), and $79.88 and $74.49 per barrel (bbl) for 2024 and 2025, respectively. However, the firm's long-term forecasts for normalized Henry Hub and WTI prices remain unchanged at $4 per mcf and $65 per barrel.
The recent guidance from ExxonMobil and the analysis by Jefferies suggest a steady performance for the oil and gas giant, as it navigates through various corporate actions and market conditions. The updated price target reflects the firm's anticipation of ExxonMobil's financial outcomes and strategic maneuvers in the near term.
InvestingPro Insights
Following the recent update by Jefferies on ExxonMobil's price target, key metrics from InvestingPro provide a deeper financial perspective on the company. With a market capitalization of $481.58 billion and a P/E ratio standing at 13.63, ExxonMobil showcases robust financial health. The company's revenue for the last twelve months as of Q4 2023 was $338.29 billion, despite a revenue decline of 15.68% in the same period. This demonstrates ExxonMobil's scale, even in the face of market fluctuations.
InvestingPro Tips indicate that ExxonMobil has raised its dividend for 41 consecutive years and that 5 analysts have revised their earnings upwards for the upcoming period, highlighting the company's consistent shareholder value and positive outlook. Additionally, with a dividend yield of 3.13%, ExxonMobil continues to be an attractive option for income-focused investors. It's also worth noting that the company's cash flows can sufficiently cover interest payments, suggesting financial stability.
For investors seeking further insights, there are 12 more InvestingPro Tips available, which could provide additional depth to their investment analysis. To explore these insights and benefit from the full range of data, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.