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What's Going On With ExxonMobil Stock? Goldman Sachs Analyst Downgrades Oil Giant

Published 01/05/2023, 15:35
Updated 01/05/2023, 16:40
© Reuters.  What's Going On With ExxonMobil Stock? Goldman Sachs Analyst Downgrades Oil Giant
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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

Image: Pixabay

Latest Ratings for XOM

DateFirmActionFromTo
Mar 2022Wells FargoMaintainsOverweight
Mar 2022MKM PartnersMaintainsBuy
Mar 2022BMO CapitalMaintainsMarket Perform
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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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