ExxonMobil to Develop Large-Scale Plastic Waste Advanced Recycling Facility

Oil and gas major Exxon Mobil Corporation (XOM) recently announced that the company will develop its first large-scale plastic waste advanced recycling facility in Baytown, Texas. The operations are likely to commence by the end of 2022.

Following the news, shares of the company declined 1% to close at $61.56 on Monday.

The development of this new facility is in line with the company’s goals of reducing plastic waste in the environment. This facility is likely to have an initial planned capacity of recycling 30,000 metric tons of plastic waste per year and the ability to ramp up capacity quickly.

The President of ExxonMobil Chemical Company, Karen McKee, said, “We’ve proven our proprietary advanced recycling technology in Baytown, and we’re scaling up operations to supply certified circular polymers by year-end. Availability of reliable advanced recycling capacity will play an important role in helping address plastic waste in the environment, and we are evaluating wide-scale deployment in other locations around the world.” (See ExxonMobil stock chart on TipRanks)

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On October 11, BNP Paribas analyst Lucas Herrmann downgraded the stock to Sell from Hold with a price target of $60, which implies downside potential of 2.5% from current levels.

Consensus among analysts is a Hold based on 3 Buys, 6 Holds and 2 Sells. The average ExxonMobil price target of $67.59 implies upside potential of 9.8% from current levels.

ExxonMobil scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 77.8% over the past year.