Morgan Stanley has revised its price target for Exxon Mobil (XOM, Financial), setting a new target of $133, down from the previous $138. Despite this adjustment, the firm maintains an Overweight rating on the stock, reflecting ongoing confidence in its potential.
The decision comes as part of a broader assessment of the North American energy sector, where Morgan Stanley updated forecasts in response to recent oil price declines. The firm now predicts 2025-26 cash flows for Exxon Mobil to be below the consensus estimates.
In light of the volatile market environment, Morgan Stanley is adopting a more cautious approach, applying a greater discount to net asset value for small and mid-cap producers, especially those facing execution challenges. This reflects uncertainty in the sector's outlook.
Furthermore, prevailing soft oil fundamentals have led Morgan Stanley to maintain an In-Line view for the exploration and production (E&P) industry in the near-to-medium term. This stance underscores the firm's cautious approach amid fluctuating market conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Exxon Mobil Corp (XOM, Financial) is $126.02 with a high estimate of $144.00 and a low estimate of $105.00. The average target implies an upside of 21.70% from the current price of $103.55. More detailed estimate data can be found on the Exxon Mobil Corp (XOM) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Exxon Mobil Corp's (XOM, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Exxon Mobil Corp (XOM, Financial) in one year is $95.99, suggesting a downside of 7.3% from the current price of $103.55. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Exxon Mobil Corp (XOM) Summary page.
