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Investing.com - HSBC raised its price target on ExxonMobil (NYSE:XOM) to $120.00 from $119.00 on Tuesday, while maintaining a Hold rating on the oil giant’s stock. The company, currently trading at a P/E ratio of 15.19x and offering a 3.69% dividend yield, has maintained dividend payments for 55 consecutive years.
The firm’s decision follows ExxonMobil’s second-quarter 2025 results, with HSBC leaving its 2025-27 estimates "broadly unchanged" after reviewing the performance. According to InvestingPro data, the company maintains a GOOD financial health score, operating with moderate debt levels and strong cash flows.
HSBC noted that its new price target implies approximately 9% upside potential for ExxonMobil shares, but the firm believes the stock is currently fairly valued, justifying the continued Hold rating.
The bank highlighted that ExxonMobil’s "superior financial performance" appears largely reflected in its current valuation compared to peers, with the company trading at a 50% premium versus other Supermajors on 2025-26 estimated price-to-cash flow.
HSBC observed that ExxonMobil’s premium has been "eroding in recent months," which improves the "relative attractiveness" of the company’s shares compared to industry peers.
In other recent news, ExxonMobil reported impressive second-quarter results for 2025, surpassing Wall Street expectations. The company achieved earnings per share of $1.64, exceeding the forecasted $1.56. Revenue also outperformed estimates, reaching $81.5 billion compared to the anticipated $80.78 billion. Following these results, Morgan Stanley (NYSE:MS) raised its price target for ExxonMobil to $135.00 from $134.00, maintaining an Overweight rating. This adjustment was influenced by both the strong earnings performance and progress in the company’s projects. Despite the positive financial outcomes, ExxonMobil’s stock saw a slight decline in pre-market trading. These recent developments highlight the company’s robust financial performance and the continued confidence from analysts.
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