TD Cowen analyst Jason Gabelman maintained a Buy rating on Exxon Mobil (XOM – Research Report) today and set a price target of $120.00.
Jason Gabelman has given his Buy rating due to a combination of factors that highlight Exxon Mobil’s strategic positioning and financial resilience. Despite some investor concerns over its commitment to maintaining capital investments, Gabelman sees Exxon Mobil as a strong contender in a weaker commodity environment. This is attributed to its robust balance sheet, low oil price required to cover dividends, and anticipated earnings growth.
Furthermore, Gabelman notes that Exxon Mobil’s approach to investing through economic cycles is a strategic advantage, as it avoids short-term gains that could compromise long-term business prospects. The company’s flexibility in adjusting investments based on market conditions, along with its significant portion of short-cycle upstream production, positions it well for potential acquisition opportunities during downturns. Additionally, Exxon Mobil’s investment in low-carbon initiatives and its readiness to defer investments if market conditions change further support the Buy rating.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $140.00 price target.