Integrated oil and gas company Exxon Mobil (NYSE:XOM) is enthusiastic about its Product Solutions business and expects the segment to deliver strong earnings in the coming years. At the Product Solutions Spotlight event held on September 20, the company said that it is focusing on growing high-value products and lowering the cost of supply, which positions it well to deliver stellar earnings in the Product Solutions division through 2027, driving the company’s overall bottom line growth.
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Investors should note that effective April 2022, Exxon Mobil streamlined its business structure by combining its Chemical and Downstream businesses into Product Solutions. The segment consists of Energy Products, Chemical Products, and Specialty Products.
Looking ahead, XOM expects strategic projects like biofuels and asset reconfigurations, investments to strengthen competitiveness, and rationalization of lower-margin and non-core assets to be the key earnings drivers for the Energy Products segment. Meanwhile, higher utilization, projects under development, and cost reductions are expected to fuel earnings growth. As for the Specialty Products division, focus on growing brand equity, cost reduction, expansion into new markets, and strategic projects provide a solid growth foundation.
As the momentum in Exxon’s Product Solutions business is anticipated to continue, let’s look at what the Wall Street analysts recommend for the stock.
Is Exxon Mobil a Buy, Sell, or Hold?
Besides for the momentum in its Product Solutions business, Exxon Mobil could benefit from higher commodity prices. On September 18, Mizuho Securities analyst Nitin Kumar increased the price target on XOM stock to $139 from $131 and maintained a Buy rating. The analyst believes that a rebound in oil and gas prices in Q3 and production cuts from OPEC+ nations would support growth.
Overall, Exxon stock has eight Buy and eight Hold recommendations for a Moderate Buy consensus rating. Moreover, analysts’ average price target of $123.57 implies 6.16% upside potential from current levels.