In a report released yesterday, Jean Ann Salisbury from Bank of America Securities reiterated a Hold rating on Exxon Mobil, with a price target of $120.00.
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Jean Ann Salisbury has given her Hold rating due to a combination of factors surrounding Exxon Mobil’s recent developments. The introduction of a new petcoke proppant technology by Exxon Mobil, which claims to enhance recovery rates by over 15%, is a significant innovation. However, despite the promising potential of this technology, market participants remain skeptical as third-party reports have not consistently demonstrated clear advantages when comparing wells using petcoke proppant to those using standard methods.
Moreover, while Wood Mackenzie’s proprietary research indicates a positive impact on well performance and cost efficiency, the small sample size of the study limits the conclusiveness of these findings. Additionally, Exxon’s ability to leverage its integrated operations to reduce costs is a competitive advantage, but the overall impact on Exxon’s financials and market position remains uncertain. Given these mixed signals and a cautious outlook on oil prices due to OPEC’s production strategies, Salisbury maintains a Hold rating, reflecting a balanced view of potential risks and rewards.
In another report released on September 15, Mizuho Securities also maintained a Hold rating on the stock with a $123.00 price target.
XOM’s price has also changed slightly for the past six months – from $116.590 to $115.590, which is a -0.86% drop .