Exxon Mobil (XOM – Research Report), the Energy sector company, was revisited by a Wall Street analyst on May 2. Analyst Jean Ann Salisbury from Bank of America Securities reiterated a Hold rating on the stock and has a $114.00 price target.
Jean Ann Salisbury’s rating is based on Exxon Mobil’s stable performance amidst market uncertainties and its strategic financial management. Although the company’s recent quarterly results were in line with expectations, its stock price is considered to be appropriately valued at the current level. Exxon Mobil has demonstrated resilience with its ongoing buyback program and debt reduction efforts, maintaining a strong net debt-to-capital ratio.
Furthermore, the company continues to invest strategically in its projects, ensuring long-term growth despite short-term market fluctuations. While there are potential impacts from tariffs and policy changes, Exxon Mobil has positioned itself to mitigate these risks effectively. The company’s projected free cash flow and yield suggest a balanced valuation, justifying the Hold rating as the stock appears to be fairly priced given its current and future financial outlook.
In another report released on May 2, Goldman Sachs also maintained a Hold rating on the stock with a $117.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of XOM in relation to earlier this year.