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What Do Analysts Forecast for ExxonMobil?

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What are Wall Street’s forecasts for ExxonMobil?

In this series, we’ve seen that ExxonMobil’s (XOM) stock has reacted negatively following its latest quarter earnings release. Now let’s look at Wall Street analysts’ forecasts for ExxonMobil following its 2Q15 earnings release.

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Consensus rating for ExxonMobil

Approximately 35% of analysts tracking ExxonMobil rate it a “buy” or some equivalent. Approximately 54% rate the company a “hold” or an equivalent, while 11% of the analysts recommend a “sell.”

In comparison, approximately 70% of analysts tracking YPF (YPF) rate it a “buy.” Similarly, 70% of analysts tracking Total’s (TOT) stock rate it a “buy.” ExxonMobil makes up 15.7% of the Energy Select Sector SPDR (XLE).

Analysts’ recommendations

Now let’s look at Wall Street analysts’ target prices for ExxonMobil following its 2Q15 financial results. When it comes to individual recommendations, Scotia Howard Well, an independent investment research firm, gave XOM a target price of $88. XOM currently trades near $77, implying a 14% return over the next 12 months.

Morgan Stanley (MS), an American investment bank, gives XOM a target price of ~$85, which implies a 10% return over the next 12 months. Investment bank Goldman Sachs (GS) gives XOM one of the highest target prices with a 12-month target of ~$93. This implies a ~21% return from XOM over the next 12 months.

Barclays (BCS), another investment bank, gave XOM a one-year target price of $80, one of the lowest target prices for the company. This target price implies a 4% return over the next 12 months.

You can learn more about the oil and gas industry from Market Realist’s Energy and Power page.

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