Analysts at Goldman Sachs said on Friday that it was downgrading
supermajor oil company Exxon Mobil Corporation (
) citing poor exploration and production numbers.
The analysts downgraded XOM from "Buy" to "Neutral" while also
cutting its price target from $100 to $97. The new price target is
a +9.5% upside from Thursday's closing price of $88.58.
Goldman Sachs analyst Arjun N. Murti commented, "We have
downgraded ExxonMobil shares to Neutral from Buy for two primary
reasons: (1) we have a less robust outlook for its E&P
production and profitability in 2013 versus our more optimistic
expectations at the time we upgraded its shares; and (2) we expect
to see increased investor appetite for higher beta energy equities
as we move into 2013 given our economists' and portfolio
strategists' expectations for recovering global GDP growth"
Exxon Mobil shares were down 51 cents, or -0.58%, in premarket
trading on Friday.
The Bottom Line
Shares of Exxon Mobil (
) have a 2.57% dividend yield, based on last night's closing stock
price of $88.58. The stock has technical support in the $84-$86
price area. The stock is trading near the all-time high range of
$92-$94 a share.
Exxon Mobil Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
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