Evercore ISI maintains ExxonMobil stock rating on strong positioning

Published 03/06/2025, 10:28
© Reuters.

On Tuesday, Evercore ISI analysts reiterated an Outperform rating for ExxonMobil stock (NYSE: NYSE:XOM) with a price target of $120.00. The reaffirmation follows a lunch meeting with ExxonMobil CEO Darren Woods in New York City, where discussions highlighted the company’s strategic advantages over its peers. According to InvestingPro data, ExxonMobil currently trades at $103.05 with a P/E ratio of 13.6, and analysis suggests the stock is currently undervalued.

Analysts emphasized ExxonMobil’s higher return opportunities in its upstream operations, as well as its efficient downstream scale. The company’s streamlined corporate cost structure and operating model are seen as key factors positioning it for increased returns on capital. InvestingPro data reveals the company maintains a strong return on equity of 14% and has consistently raised its dividend for 42 consecutive years, demonstrating operational excellence and shareholder commitment.

ExxonMobil’s efforts to mitigate the impacts of commodity volatility were noted, as the company has made significant strides over the past nine years under Woods’ leadership. The company has focused on cost reductions, major project execution, and continued investments based on a $35 per barrel assumption, which are expected to help it outperform competitors.

The analysts also highlighted ExxonMobil’s capabilities in managing hydrogen and carbon molecules, which are integrated across all business lines, including low-carbon initiatives. This strategy is considered unique and coherent, reinforcing the company’s value proposition and business outlook stability.

The report concludes with a strong conviction that ExxonMobil will continue to attract a larger share of energy investment flows, both active and passive, maintaining its position as a leader in the energy sector. With a market capitalization of $444 billion and a healthy 3.84% dividend yield, the company’s financial health score on InvestingPro is rated as GOOD, supported by strong cash flows and moderate debt levels. Investors can access detailed analysis and 10+ additional ProTips through InvestingPro’s comprehensive research reports.

In other recent news, ExxonMobil reported its first quarter 2025 financial results, surpassing earnings per share (EPS) expectations with a reported $1.76 compared to the anticipated $1.73. However, the company’s revenue fell short of projections, coming in at $83.13 billion against an expected $86.09 billion. Despite this revenue miss, ExxonMobil achieved $7.7 billion in earnings, supported by significant operational milestones and cost savings. The company generated $13 billion in cash flow from operations, maintaining a strong competitive position among its peers. In a separate development, the U.S. Energy Department canceled a $332 million award for a green energy project at ExxonMobil’s Baytown, Texas refinery complex. This move is part of a broader cancellation of $3.7 billion in green energy project awards issued during the Biden administration. Furthermore, German asset manager Union Investment divested from ExxonMobil due to perceived insufficient commitment to climate targets. These developments reflect the ongoing scrutiny and strategic shifts within the energy sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.