Goldman Sachs Downgrades Exxon Mobil to “Neutral” (XOM)

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Analysts at Goldman Sachs said on Friday that it was downgrading supermajor oil company Exxon Mobil Corporation ( XOM ) 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 ( XOM ) 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 ( XOM ) 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 our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: XOM

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