Benzinga - Shares of oil giant ExxonMobil Corp (NYSE: XOM) are moving to the downside Monday after Goldman Sachs downgraded the stock.
Here’s what investors need to know.
The XOM Analyst: Goldman Sachs analyst Neil Mehta downgraded Exxon from a Buy to a Neutral rating, and set a $125 price target on the stock. Shares are trading around the $116 level Monday morning.
Exxon has a less compelling valuation after the oil giant's massive multi-year run, Mehta says, noting some non-oil tailwinds — refining margins, chemicals, and global gas prices — are abating.
The analyst said he still sees potential in the energy sector and remains optimistic about oil prices in the long term.
Exxon’s cost-cutting, leadership changes, long-term project investments, and stronger conviction on stock repurchases and divided yields helped drive a structural re-rate after years of underperformance.
Earnings By The Numbers: Exxon last Friday beat consensus estimates on the top and bottom lines, reporting an EPS of $2.83, on revenues of $86.56 billion.
Price action: Shares of Exxon are trading 1.06% lower to $117.09, according to data from Benzinga Pro.
Next: Economist Says Stock Market Will Witness Largest Crash Since 1929
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Latest Ratings for XOM
Mar 2022 | Wells Fargo | Maintains | Overweight | |
Mar 2022 | MKM Partners | Maintains | Buy | |
Mar 2022 | BMO Capital | Maintains | Market Perform |
View the Latest Analyst Ratings
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