J.P. Morgan analyst Arun Jayaram maintained a Buy rating on Exxon Mobil today and set a price target of $140.00.
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Arun Jayaram has given his Buy rating due to a combination of factors including Exxon Mobil’s diversified operations and resilient cash generation profile. He emphasizes that the company’s mix of upstream, downstream, and chemical/specialty businesses, coupled with a low dividend breakeven level, positions it to benefit from a potential recovery in energy demand while limiting downside in weaker commodity environments.
He also points to strong free cash flow growth from high-margin assets in Guyana and a differentiated development strategy in the Permian, supported by the completion of most major projects that should lift earnings over the medium term. In his view, Exxon Mobil’s solid balance sheet, reliable and recently increased dividend, and defensive characteristics justify a valuation premium to peers and support a $140 per share target based on a favorable FCF/EV yield framework, underpinning his continued Buy recommendation.
In another report released on February 4, Piper Sandler also maintained a Buy rating on the stock with a $145.00 price target.