Exxon Mobil Corp (NYSE:XOM) shares are trading lower on Tuesday following Monday’s mixed analyst ratings and a report claiming it was not giving up on oil exploration in Brazil. Also, BP Plc’s (NYSE:BP) dismal quarterly results affected the stock price.
“I would say very crystal clear that Exxon Mobil is not quitting exploration in Brazil at all,” Reuters cites country chief Alberto Ferrin said Monday during the Houston Offshore Technology Conference (OTC).
Ferrin said that Exxon is searching for exploration opportunities such as the one it encountered in Guyana, where it has had an 89% success rate. “Brazil offers those exploration success enablers that we look for globally, no doubt about that. Good rocks, good commercial terms, stable fiscals, technology advancement,” he said.
Analyst comments: Truist Securities analyst Neal Dingmann maintains Exxon Mobil with a Hold and raises the price target from $116 to $118. ExxonMobil released its quarterly earnings, highlighting the company’s structure earnings improvements that resulted in its best-ever first-quarter earnings results.
The analyst updated estimates for the 1Q23 release and updated guidance. Exxon remains the “go-to” stock for generalists seeking energy exposure but wanting to “hide” in a position that can provide operational and financial advantages.
Morgan Stanley analyst Devin McDermott maintains Exxon Mobil with an Overweight, raising the price target from $118 to $122.
Over the past several years, XOM has been advancing its attractive portfolio of growth projects across its upstream, downstream, and chemical businesses. The benefits of these investments and the company’s cost reduction initiatives continue to show, with XOM topping 1Q.
The analyst highlights Exxon Mobil’s diversified portfolio of growth opportunities across the energy and chemicals value chain and a much larger exposure to refining versus Chevron Corp (NYSE:CVX).
In contrast, Goldman Sachs analyst Neil Mehta downgraded Exxon Mobil from Buy to Neutral and a $125 price target. The re-rating reflects Exxon’s less compelling valuation after the oil giant’s massive multi-year run as some non-oil tailwinds wane, including refining margins, chemicals, and global gas prices.
Price Action: XOM shares traded lower by 4.39% at $109.64 on the last check Tuesday.
