RBC Capital Markets analyst Biraj Borkhataria downgraded Exxon Mobil Corp (NYSE:XOM) to Sector Perform from Outperform at a price target of $125.

On the other hand, the analyst upgraded Chevron Corp (NYSE:CVX) to Outperform from Sector Perform at an increased price target of $180.00 (from $165.00 earlier). 

Take on XOM:

• The analyst expects moderating earnings momentum, with refining margins declining significantly along with persistent challenging chemicals margins amid a tough market.
• Borkhataria projects XOM to be impacted by continued volatility in commodity prices and more exposure to refining than global peers as downstream is nearing the recession level.
• Nevertheless, the analyst applauds XOM's cost-saving efforts and sees quarterly earnings benefiting from it.
• Borkhataria reduced estimates for EPS to $10.75 from $11.08 in 2023 and raised estimates for 2024 EPS to $11.12 from $11.07 earlier.
• The analyst cut the estimate for production to 3.69 mboe/d (from 2.77 mboe/d earlier) in 2023 and 3.73 mboe/d (from 3.90 mboe/d earlier) in 2024.
• At current futures prices, the analyst expects net income to be 7% below consensus earnings in 2023 ($78 Brent) and 13% below in 2024 ($74 Brent).
• Also Read: Exxon Mobil Gives Cold Shoulder to Climate Change Proposals, Claims It's Not a Break-Up
• Price Action: XOM shares are trading higher by 0.29% at $102.48 on the last check on Thursday. 

Take on CVX: