The FBI is investigating a hack-and-leak operation targeting the critics of oil producer Exxon Mobil (XOM), according to Reuters. Sources revealed that lobbying firm DCI Group (which worked for Exxon at the time) tasked mercenary hackers to access emails from environmental activists. Some of the stolen material was then leaked to media outlets to portray Exxon as a victim of political attacks.
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The operation, which was dubbed “Fox Hunt,” disrupted legal efforts by environmentalists and state attorneys general against Exxon, which were modeled on tobacco industry litigation from the 1990s. Indeed, leaked documents were used to counter lawsuits alleging that Exxon misled the public and investors about climate risks. As a matter of fact, an industry trade group recently cited a hacked memo in an attempt to block a lawsuit by Honolulu.
Exxon denied involvement in any hacking activities and called the allegations “conspiracy theories,” while DCI stated its employees are directed to comply with the law. The hack targeted over 500 email accounts of environmentalists and their affiliates between 2015 and 2018, Reuters reported. And although DCI and Exxon parted ways in 2020, leaked documents were repeatedly used in Exxon’s legal defenses, which included a 2018 New York lawsuit that was dismissed.
XOM Sees Its Price Target Cut
In a separate development, RBC Capital cut its price target on Exxon Mobil from $120 to $115 while maintaining a Sector Perform rating. Despite Exxon outperforming most energy stocks this year, RBC highlighted concerns over softer downstream margins heading into 2025 and higher expected capital spending in the medium term. As a result, the firm sees better risk-reward opportunities elsewhere in the energy sector.
What Is the Price Target for XOM?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on XOM stock based on 12 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 18% rally in its share price over the past year, the average XOM price target of $131.20 per share implies 11% upside potential.
