U.S. investment bank Goldman Sachs (GS) has lowered its price target on energy major Exxon Mobil’s (XOM) stock while maintaining a neutral rating on the shares.
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In a research note, Neil Mehta, a top five-star rated analyst, cut the price target on XOM stock to $117 from $123 while reiterating a Hold-equivalent neutral rating on the shares. The update on Exxon Mobil’s stock comes after the oil and natural gas producer recently reported its fourth-quarter financial results.
Mehta said that the main reason for the lowered price target relates to valuation expectations for the stock, as well as a reduced earnings outlook. Goldman Sachs now forecasts that Exxon Mobil will post earnings per share (EPS) of $7.49 in 2025 and $9.41 in 2026, down from $8.17 and $9.97 previously.
Uncertain Oil Market
Goldman Sachs also noted an uncertain outlook for crude oil demand this year due to slowing economic growth in China and new regulations and policies in the U.S. under President Donald Trump. “Key risks relate to commodity prices, refining margins, and operational execution,” wrote Mehta in the report.
Oil prices have been jostled in recent weeks following Trump’s inauguration as the new administration takes steps to promote greater oil production but also threatens tariffs on major trade partners such as China. West Texas Intermediate (WTI) crude oil, the U.S. standard, is currently trading at $73.20 per barrel. XOM stock has risen 12% over the past year.
Is XOM Stock a Buy?
The stock of Exxon Mobil currently has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on 13 Buy and five Hold recommendations assigned in the last three months. The average XOM price target of $133.12 implies 21.52% upside from current levels.
