J.P. Morgan analyst Arun Jayaram maintained a Buy rating on Exxon Mobil today and set a price target of $124.00.
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Arun Jayaram has given his Buy rating due to a combination of factors that highlight Exxon Mobil’s strategic advancements and financial stability. The company has demonstrated significant improvements in well productivity through its innovative lightweight proppant technology, particularly in the Permian Basin. This technology has led to notable increases in oil and total cumulative production, especially in the Delaware and Midland Basins, showcasing Exxon Mobil’s ability to enhance recovery rates.
Furthermore, Exxon Mobil’s diversified portfolio, which includes high-margin assets in Guyana, positions it well for future free cash flow growth. The company’s disciplined capital allocation strategy, including a consistent $20 billion annual investment post-acquisition of Pioneer Natural Resources, underscores its financial resilience. Additionally, the acquisition has strengthened Exxon Mobil’s position in the Permian Basin, with credible synergy guidance increases. These factors, combined with a favorable dividend yield and a defensive market position, support the Buy rating with a price target of $124 per share by December 2025.
In another report released on September 23, UBS also maintained a Buy rating on the stock with a $143.00 price target.
Based on the recent corporate insider activity of 40 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.