In a report released today, Arun Jayaram from J.P. Morgan reiterated a Buy rating on Exxon Mobil, with a price target of $124.00.
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Arun Jayaram has given his Buy rating due to a combination of factors that underscore Exxon Mobil’s resilient and diversified business model. He highlights the company’s balanced exposure across upstream, downstream, and chemical/specialty products, which positions Exxon Mobil to benefit from a potential recovery in energy demand while limiting volatility. He also points to strong free cash flow growth prospects driven by high-margin upstream assets in Guyana and a differentiated, scale-driven development strategy in the Permian Basin. In addition, most of Exxon Mobil’s major growth projects are already online, supporting earnings momentum over the medium term.
Arun Jayaram also emphasizes Exxon Mobil’s defensive characteristics and shareholder-friendly capital returns as key reasons for the Buy rating. The company’s low dividend breakeven provides meaningful downside protection if commodity prices or macro conditions weaken, while its sizable and growing base dividend reflects management’s confidence in long-term cash generation. He notes that Exxon Mobil’s scale and diversification justify trading at a premium to peers and sees its role as a “safety trade” within the energy sector as particularly attractive in an uncertain market backdrop. Based on these factors and a valuation anchored in projected free cash flow yields, he supports a December 2026 price target of $124 per share, implying further upside from current levels.
In another report released today, UBS also maintained a Buy rating on the stock with a $145.00 price target.
Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of XOM in relation to earlier this year.