ExxonMobil stock maintains Neutral rating at Mizuho ahead of Q2 earnings

Investing.com - Mizuho (NYSE:MFG) has reiterated its Neutral rating and $124.00 price target on ExxonMobil (NYSE:XOM), the $483 billion oil giant, ahead of its second-quarter 2025 earnings report. According to InvestingPro analysis, XOM appears undervalued at current levels, with analysts’ targets ranging from $95 to $142 per share.

Mizuho expects ExxonMobil to report earnings per share of approximately $1.72 for the second quarter, about 11% above current consensus estimates, despite headwinds from commodity prices in the Upstream segment. InvestingPro data shows the company maintains a strong financial health rating with a P/E ratio of 14.85x and has consistently delivered profits, maintaining dividend payments for 55 consecutive years.

The firm anticipates that supporting pricing in Energy Products and Chemicals/Specialty Products segments will largely offset weakness in the Upstream business, while upstream volumes are expected to remain largely flat compared to the first quarter of 2025.

Mizuho’s cash flow per share estimate is approximately 13% below consensus, but includes $2.5-3.0 billion of seasonal cash tax payments as guided by the company, while its capital expenditure estimate of $7.3 billion is about 5% above Street expectations but aligns with ExxonMobil’s full-year guidance of $27-29 billion.

The firm maintains its Neutral stance on ExxonMobil with a net asset value-based price target of $124 per share, with a modest production ramp anticipated in the second half of 2025.

In other recent news, ExxonMobil’s upcoming earnings report has garnered attention, with UBS maintaining its Buy rating and setting a price target of $130. UBS projects ExxonMobil’s second-quarter 2025 adjusted earnings per share to be $1.66, surpassing the Street consensus of $1.52, although lower than the previous quarter’s $1.76. The anticipated decline is attributed to falling oil prices, despite partially recovering refining margins. Meanwhile, TD Cowen has increased its price target for ExxonMobil to $128 from $120, citing higher near-term earnings expectations. This adjustment reflects ExxonMobil’s strategic efforts, including the integration of Pioneer Natural Resources (NYSE:PXD) and potential synergies. Additionally, Evercore ISI has reiterated an Outperform rating with a $120 price target, emphasizing ExxonMobil’s strategic advantages and efficient cost structure. The company’s focus on technology and low-carbon initiatives, as noted by UBS, further strengthens its position in the energy sector. These developments highlight ExxonMobil’s continued strategic maneuvers and strong positioning in the market.

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