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Investing.com - RBC Capital maintained its Sector Perform rating and $105.00 price target on ExxonMobil (NYSE:XOM) on Monday, citing several challenges facing the energy giant.
The investment firm expressed caution about ExxonMobil’s near-term outlook, specifically highlighting expected headwinds to the company’s Chemicals earnings in the second half of 2025 and into 2026.
RBC Capital noted that the majority of ExxonMobil’s liquefied natural gas (LNG) portfolio is concentrated in Qatar, potentially limiting geographic diversification benefits.
The firm pointed to risks surrounding ExxonMobil’s flagship low carbon project at Baytown, which faces potential deferment due to subsidy uncertainties. The Department of Energy recently announced the cancellation of funding for the project.
RBC Capital further explained that the Baytown project was positioned to benefit from both Section 45V tax credits in the United States and import subsidies in other markets, but these financial supports are now "less certain."
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