TD Cowen Adjusts ExxonMobil Price Target to $125, Maintains Buy Rating
NEW YORK (Investing.com) – Analysts at TD Cowen on Friday cut their price target on ExxonMobil (NYSE: XOM) shares to $125.00 from $128.00, while maintaining a “buy” rating on the energy giant’s stock.
XOM shares are currently trading at $105.53, nearing a 52-week low. However, ExxonMobil maintains strong financial health, which is a key factor in a volatile market, according to InvestingPro.
The price target adjustment comes after TD Cowen updated its Q1 2025 EPS forecast from $1.68 to $1.70 per share. This is lower than the company’s guidance of $1.80, but in line with the market consensus. The current full-year 2025 EPS forecast is $7.27, which translates to a P/E multiple of about 13.57 times.
According to TD Cowen, ExxonMobil’s upstream business is performing better than expected. However, the recent guidance does not reflect some one-time benefits from the previous quarter, as well as increased depreciation from the Tengizchevroil (TCO) joint venture. In return, operating expenses (opex) have decreased slightly, helping to balance the balance sheet.
In addition, the report also shows that ExxonMobil’s share buyback program is unlikely to face significant risks through at least 2026, despite the potential for lower commodity prices. TD Cowen continues to rate ExxonMobil as a top oil and gas stock.
Mizuho Securities followed suit, cutting its price target to $129 from $131 and maintaining its “Neutral” rating. Mizuho forecasts first-quarter EPS of $1.72, up slightly quarter-on-quarter but down year-on-year.
In other news, ExxonMobil recently announced its first-quarter 2025 earnings guidance of $1.81 per share, above UBS’s $1.75 and Wall Street’s $1.73 estimates. Net revenue is expected to be $7.9 billion, driven by improving commodity prices and rising industry margins.
On the personnel front, ExxonMobil said that Karen T. McKee, President of Product Solutions, will retire on May 1, 2025. Matt Crocker will take over, bringing with him a wealth of experience from previous senior management positions within the company.
Amidst a changing energy landscape, ExxonMobil remains steadfast in its innovation and sustainability strategy. The company aims to achieve net-zero emissions from all of its operating assets by 2050.
Is XOM Undervalued?
The current price may leave many investors wondering: Is XOM stock actually undervalued? According to analysis from InvestingPro, the stock is trading below its median valuation range, with a target price of $105 to $146. However, XOM is not among the top-rated stocks by AI ProPicks, Investing.com's artificial intelligence-powered stock prediction tool.
Stay tuned for the latest updates and in-depth reports from InvestingPro for a more comprehensive look at XOM stock and effective investment strategies.