In a report published Tuesday, Bank of America Merrill Lynch Downgraded Exxon Mobile Corporation XOM to Neutral from Buy, dropping its price objective to $106.00 from $110.00.
According to the report, over the past year XOM has been the analyst's preferred super major and they continue to lean towards the shares as the best placed defensive stock in this
narrow peer group.
“A series of recent announcements outside XOM's control risks cancelling out prod'n growth in 2014,” the report noted. “On 1/17 the Dutch Government announced production cuts at the giant Groningen field, in response to concerns over earth tremors believed associated with the 60 yr old field. Additionally, discussions with XOM suggest it will lose output at its onshore concession in the UAE following lease expiry at the start of the year. The combined loss of ~190,000 boepd essentially wipes out planned growth of ~4% in 2014; while the impact on earnings is modest, reassessing XOM's broader portfolio leads us to raise the issue of a potentially higher Gov't take at its flagship RasGas development as consequence of higher oil prices in recent years.”
XOM closed Friday at $99.16.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Posted In: Analyst ColorDowngradesAnalyst RatingsBank of America Merrill LynchExxon Mobile Corporation
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in