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Investing.com - Piper Sandler has raised its price target on ExxonMobil (NYSE:XOM) stock to $134.00 from $131.00 while maintaining an Overweight rating. According to InvestingPro analysis, the stock appears undervalued, with the company maintaining strong financial health and a solid 3.56% dividend yield.
The firm adjusted its ExxonMobil price target based on its updated oil price forecast, which now projects Brent crude at $67 per barrel in 2025 and $63 per barrel in 2026, up from previous estimates of $63 and $61 respectively.
Despite the higher price target, Piper Sandler reduced its second-quarter earnings estimate for ExxonMobil to $1.52 per share, down from its previous estimate of $1.67 and slightly below the Street consensus of $1.53.
The downward revision to quarterly earnings expectations stems primarily from lower anticipated Energy Products contributions, which the firm now estimates at $1.3 billion versus its previous $1.6 billion forecast.
Piper Sandler also reduced its Upstream earnings estimate to $5.0 billion from $5.3 billion previously, citing lower liquids and gas prices weighing on the sector.
In other recent news, ExxonMobil, along with its partner QatarEnergy, has discovered a significant natural gas reservoir off the coast of Cyprus. This marks their second gas find in Block 10, with further assessments planned to evaluate the reservoir’s potential. Meanwhile, ExxonMobil is gearing up for its second-quarter 2025 earnings report, with UBS maintaining a Buy rating and forecasting earnings per share of $1.66, surpassing the Street consensus. Mizuho (NYSE:MFG), however, maintains a Neutral rating, projecting earnings per share of $1.72, which is about 11% above consensus estimates.
In a separate development, TD Cowen raised its price target for ExxonMobil to $128, citing higher near-term earnings expectations and reaffirming the company as a "Top Pick" in its coverage. The firm noted ExxonMobil’s technological advancements and strategic positioning in the energy sector. Additionally, Kazakhstan’s Tengizchevroil, partially owned by ExxonMobil, has successfully shipped its first oil to Germany via Russia’s Druzhba pipeline, marking a new export route. These developments reflect ongoing strategic moves and potential growth opportunities for ExxonMobil in the global energy market.
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