Bank of America Downgrades ExxonMobil (NYSE:XOM) to Neutral

Key Points

• Bank of America downgraded ExxonMobil from “buy” to “neutral” and set a $158 price target, implying approximately 2.26% upside from the prior close.
• Analyst sentiment remains broadly positive but mixed: ExxonMobil has a “Moderate Buy” consensus rating and a $163.45 average target price, based on one Strong Buy, nine Buys, and twelve Holds.
• ExxonMobil recently exceeded quarterly earnings and revenue expectations, reporting $1.16 in EPS versus $0.98 expected and $83.16 billion in revenue versus $81.13 billion forecast.

ExxonMobil (NYSE:XOM - Get Free Report) was downgraded by analysts at Bank of America from a "buy" rating to a "neutral" rating in a research report issued to clients and investors on Tuesday, MarketBeat Ratings reports. They presently have a $158.00 price objective on the oil and gas company's stock. Bank of America's price objective would suggest a potential upside of 2.26% from the stock's previous close.

Other equities research analysts have also recently issued reports about the company. JPMorgan Chase & Co. lifted their target price on ExxonMobil from $140.00 to $170.00 and gave the stock an "overweight" rating in a research note on Thursday, April 9th. Zacks Research downgraded shares of ExxonMobil from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 26th. Wells Fargo & Company lifted their price objective on shares of ExxonMobil from $183.00 to $185.00 and gave the stock an "overweight" rating in a research report on Thursday, April 9th. Mizuho dropped their target price on shares of ExxonMobil from $175.00 to $170.00 and set a "neutral" rating on the stock in a research note on Thursday, July 9th. Finally, Sanford C. Bernstein reduced their target price on shares of ExxonMobil from $195.00 to $182.00 and set an "outperform" rating for the company in a research report on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and twelve have given a Hold rating to the company's stock. Based on data from MarketBeat, ExxonMobil presently has an average rating of "Moderate Buy" and a consensus target price of $163.45.

ExxonMobil Stock Performance

XOM stock opened at $154.50 on Tuesday. The company has a quick ratio of 0.77, a current ratio of 1.04 and a debt-to-equity ratio of 0.13. The firm has a market cap of $640.42 billion, a PE ratio of 26.05, a P/E/G ratio of 0.64 and a beta of 0.17. The business has a 50 day moving average of $145.80 and a 200-day moving average of $147.84. ExxonMobil has a 12-month low of $105.53 and a 12-month high of $176.41.

ExxonMobil (NYSE:XOM - Get Free Report) last issued its quarterly earnings results on Friday, May 1st. The oil and gas company reported $1.16 EPS for the quarter, topping analysts' consensus estimates of $0.98 by $0.18. The business had revenue of $83.16 billion for the quarter, compared to analyst estimates of $81.13 billion. ExxonMobil had a return on equity of 10.24% and a net margin of 7.57%.ExxonMobil's quarterly revenue was up 2.4% compared to the same quarter last year. During the same period last year, the company posted $1.76 earnings per share. As a group, sell-side analysts expect that ExxonMobil will post 11.55 earnings per share for the current year.

Hedge Funds Weigh In On ExxonMobil

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Berbice Capital Management LLC bought a new stake in ExxonMobil during the 4th quarter valued at $26,000. Midwest Capital Advisors LLC purchased a new position in shares of ExxonMobil in the fourth quarter valued at $27,000. E Fund Management Hong Kong Co. Ltd. raised its stake in shares of ExxonMobil by 456.1% during the 4th quarter. E Fund Management Hong Kong Co. Ltd. now owns 228 shares of the oil and gas company's stock valued at $27,000 after purchasing an additional 187 shares during the period. Aventus Investment Advisors Inc. purchased a new stake in shares of ExxonMobil in the second quarter worth about $27,000. Finally, Key Capital Management INC purchased a new stake in ExxonMobil in the 4th quarter worth approximately $28,000. Institutional investors own 61.80% of the company's stock.

Key Headlines Impacting ExxonMobil

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: Wall Street analysts remain moderately optimistic after ExxonMobil outperformed the broader market over the past year, suggesting expectations for additional gains. Are Wall Street Analysts Predicting ExxonMobil Stock Will Climb or Sink?
• Positive Sentiment: If crude oil remains above $100 per barrel, ExxonMobil could benefit from stronger upstream cash generation, making it one of the established producers positioned to gain from sustained high prices. Top 3 stocks that could rally if oil settles above $100
• Positive Sentiment: A valuation analysis argues that ExxonMobil may still trade below estimates of its intrinsic value and relevant market multiples, despite its substantial five-year return. ExxonMobil Stock Could Be Cheap on Value
• Neutral Sentiment: ExxonMobil is reportedly shifting new oil investment toward Nigeria and other African opportunities. The move could support future production, but returns will depend on project execution and regional risks. ExxonMobil Is Moving New Oil Spending to Nigeria and Africa
• Neutral Sentiment: Investors are focused on ExxonMobil’s upcoming earnings report, alongside major technology and energy companies, which could provide a near-term catalyst. Markets are also watching the Federal Reserve and inflation data. Earnings Week Ahead
• Negative Sentiment: Oil prices fell as tensions in the Middle East appeared to ease, reducing the immediate geopolitical premium in crude and weighing on oil producers such as XOM. Exxon Mobil Shares Fall as Oil Prices Tumble
• Negative Sentiment: The latest trading coverage reported ExxonMobil declining while the wider market gained, reflecting near-term sector pressure rather than a new company-specific operational issue. Exxon Mobil Stock Sinks as Market Gains

ExxonMobil Company Profile

ExxonMobil Corporation NYSE: XOM is an integrated oil and gas company engaged in the exploration, production, refining, distribution and marketing of petroleum products and the manufacture and sale of petrochemicals. Its operations span the full energy value chain, including upstream exploration and development of crude oil and natural gas; midstream transportation and storage; and downstream refining, product distribution and retail. The company also produces a broad range of chemical products for industrial and consumer applications.

ExxonMobil markets fuels and lubricants under well-known brands such as Exxon, Mobil and Esso, and its Mobil 1 motor oil is a prominent consumer product.

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