“Let the market work.” That was the word from Exxon (NYSE:XOM) CEO Darren Woods, who noted that Europe’s approach to environmentalism and climate policy should more closely match that of the United States, where the market moves to find the solutions that require the least cost on businesses and then put those solutions to work themselves.
As Woods noted: “It’s a huge mistake to be picking winners and losers and focusing on specific technologies.” After all, Woods further noted, even if Exxon Mobil stopped producing gasoline, diesel, and liquified natural gas, someone else would step in to meet that demand, which will not stop.
That’s particularly true given the overall macroeconomic picture. While a recession—which we may be in already—may restrict demand, there are generally pockets of improvement. Demand may rise in one place and lower in another. Further, with OPEC recently establishing another production cut—another one million barrels per day fewer starting in July—that’s going to open up more room for Exxon Mobil products.
Regardless, Exxon still has plenty of analyst support. It’s considered a Moderate Buy thanks to a combination of nine Buy ratings and five Holds. Further, Exxon Mobil stock comes with 19.17% upside potential thanks to its average price target of $129.54.
