TD Cowen analyst Jason Gabelman maintained a Buy rating on Exxon Mobil today and set a price target of $128.00.
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Jason Gabelman has given his Buy rating due to a combination of factors that highlight Exxon Mobil’s strong financial and operational position. The company’s recent results exceeded expectations, partly due to non-repeatable items, and it is showing interest in acquisitions, although details remain sparse. Exxon Mobil’s commitment to expanding its operations in the Permian Basin into the 2030s is a positive indicator of its long-term growth strategy. Additionally, the potential slowdown in low-carbon development could result in reduced spending, which might be viewed favorably by investors.
Exxon Mobil is set to bring three major Upstream projects online in the second half of 2025, which could significantly enhance its production capabilities. The company’s financial projections, including a forecasted 6.5% free cash flow yield in 2026, suggest a strong financial outlook. Furthermore, Exxon Mobil’s robust project backlog, superior balance sheet, and unique market growth opportunities make it a preferred choice among international oil companies. The company’s ongoing initiatives, such as the start-up of multiple projects this year, are expected to generate substantial incremental earnings, reinforcing its position as a top pick in the industry.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $135.00 price target.