Analyst Jean Ann Salisbury from Bank of America Securities reiterated a Hold rating on Exxon Mobil and keeping the price target at $113.00.
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Jean Ann Salisbury has given her Hold rating due to a combination of factors that reflect both the strengths and uncertainties surrounding Exxon Mobil. The company reported a strong second quarter with earnings per share surpassing expectations, driven by robust liquids production and impressive upstream earnings. Additionally, Exxon Mobil has demonstrated significant structural savings and growth in advantaged barrels, particularly in the Permian Basin, where production has reached record levels. These factors underscore the company’s operational strengths and potential for future growth.
However, despite these positive indicators, there are concerns that justify the Hold rating. The uncertainty surrounding the timing of future projects, especially in low carbon solutions, poses a risk. Changes in policy, such as the 45V hydrogen tax credit, could impact the development of key projects like the Baytown Blue Hydrogen initiative. Moreover, potential fluctuations in oil prices due to increased Saudi production add to the cautious outlook. These elements contribute to the decision to maintain a neutral stance on Exxon Mobil’s stock.
In another report released on August 1, RBC Capital also maintained a Hold rating on the stock with a $105.00 price target.