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ExxonMobil: Wall Street analysts call it

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Dec. 4 2020, Updated 10:52 a.m. ET

What is Wall Street saying?

Earlier in this series, we looked at the positive reaction of ExxonMobil shares (XOM) to the company’s latest quarterly earnings release. Now, let’s look at what Wall Street analysts have to say about the company.

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Most rate ExxonMobil a “hold”

Approximately 35% of Wall Street analysts tracking ExxonMobil (XOM) rate it a “buy” or some equivalent. Approximately 55% rate the company a “hold” or an equivalent, and 10% of the analysts recommend a “sell.”

It speaks well of the company’s performance that even amid one of the most severe crude oil price slumps in history, more than three-fourths of analysts tracking the stock recommend “hold” or “buy.” For added context, you may wish to read Is a crude oil price trend forcing energy companies to bite the bullet?

Analyst recommendations

When it comes to individual recommendations, Evercore ISI and BMO Capital Markets, two independent research firms, give ExxonMobil (XOM) a target price of $100 and $95, respectively. Both recommend a “buy” or its equivalent. ExxonMobil (XOM) currently trades near $92, so according to these research firms, investors should be looking at between 3% and 8% returns for the next 12 months.

RBC Capital Markets, part of the Royal Bank of Canada, gives ExxonMobil (XOM) the 12-month target price of $97. This would imply a ~5% return.

Among the investment banks, Barclays (BCS) gives ExxonMobil (XOM) a target of $95. Crédit Suisse, the investment arm of Credit Suisse Bank (CS), recommends “underperform” and assigns a target of $82. This would suggest a -11% return at its current price over the next year.

Société Générale gives ExxonMobil (XOM) the highest target price, $113. This would suggest a 22% return over the next 12 months. Evidently, Wall Street has decent expectations for ExxonMobil (XOM).

You may also invest in the Energy Select Sector SPDR ETF (XLE). Following its 4Q14 earnings release, more than 50% of the analysts tracking Chevron Corporation (CVX) have rated it as “hold.” Chevron makes up 13.7% of XLE.

Check out Market Realist’s Energy & Power page for more.

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