Trend followers stage recovery as stretched S&P, Nasdaq longs fuel gains
Investing.com - Goldman Sachs has reiterated its Neutral rating on ExxonMobil (NYSE:XOM) with a price target of $117.00. According to InvestingPro analysis, the stock appears undervalued at its current price of $106.80, trading at a P/E ratio of 15.1x while maintaining a solid 3.74% dividend yield.
The investment bank maintained its stance on the oil giant amid broader concerns about economic conditions affecting various sectors including paper and pulp. ExxonMobil’s financial health score is rated as "GOOD" by InvestingPro, with notably low price volatility and a 42-year streak of consecutive dividend increases, suggesting resilience during economic uncertainty.
Goldman Sachs analyst Neil Mehta provided the rating confirmation, keeping the same price target that had been previously established for ExxonMobil shares.
The firm simultaneously expressed a more negative outlook on paper manufacturer Sylvamo (SLVM), maintaining an Underperform rating due to what it described as "relative upside and risks" along with challenges in the paper/pulp sector and global economy.
Goldman Sachs noted that North American volumes in the paper sector were down approximately 6% excluding the impact from a Georgetown mill closure, with market trends potentially facing continued pressure into the third quarter and possibly beyond.
In other recent news, ExxonMobil has commenced production at its fourth oil development in Guyana’s offshore Stabroek block. This project, known as Yellowtail, features the largest floating production storage and offloading vessel in the area, boosting the country’s total installed capacity to over 900,000 barrels of oil per day. The facility, which began operations ahead of schedule, will produce Golden Arrowhead crude. In financial developments, ExxonMobil reported its second-quarter 2025 results, surpassing Wall Street expectations with an earnings per share of $1.64, compared to the forecasted $1.56. The company’s revenue also exceeded estimates, reaching $81.5 billion against a forecast of $80.78 billion. Following these earnings results, HSBC raised its price target for ExxonMobil to $120 while maintaining a Hold rating. Additionally, Morgan Stanley (NYSE:MS) increased its price target to $135, citing strong quarterly performance and project progress, and maintained an Overweight rating. These developments indicate a positive outlook from analysts on ExxonMobil’s financial and operational performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.