Exxon Mobil Corporation
Goldman Sachs’ Neil Mehta downgraded the rating on the company from Buy to Neutral, while lowering the price target from $98 to $93.
Better Prospects Elsewhere
“Since our upgrade to Buy in March 2015, we have viewed XOM as a defensive winner, with sharp downside to capital spending forecasts and near-term growth from international project start-ups,” Mehta mentioned.
However, the analyst now believes looking ahead into 2017/2018, Chevron Corporation
“We see few catalysts for XOM to drive relative outperformance vs. Energy, especially in a rangebound commodity price environment,” Mehta went on to say.
The stock has appreciated 4 percent since July 2015, as compared to the 3 percent decline in the Energy Select Sector SPDR (ETF)
In fact, according to
Mehta sees greater upside in Chevron’s stock, “given higher levels of growth with the in-service of large Australia LNG projects; greater clarity on maximizing value in the Permian and US unconventional plays; and stronger free cash flow generation in 2017/2018.”
In support of this perception, a
The EPS estimates for Exxon Mobile for 2016-2018 have been lowered to reflect the updates production, costs and refining margins.
|Oct 2016||Goldman Sachs||Downgrades||Buy||Neutral|
|Jun 2016||Bank of America||Downgrades||Buy||Neutral|
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