On Tuesday, ExxonMobil's (NYSE:XOM) stock received a positive adjustment from TD Cowen, with its price target being raised to $135 from the previous $128, while the firm retained a Buy rating on the shares. The revision comes in the wake of the company's first-quarter earnings for 2024, which, according to the firm, would have surpassed consensus estimates if not for approximately $0.21 per share in one-time items.
The analyst from TD Cowen highlighted ExxonMobil's robust underlying performance, particularly noting the company's capacity to nearly self-finance a normalized share buyback program through its operations. This strength is anticipated to persist, with the expectation that several significant projects scheduled to commence in 2025 will support this trend.
ExxonMobil's confidence in finalizing the acquisition of Pioneer Natural Resources (NYSE:PXD) in the second quarter of 2024 was also underscored as a positive factor. The successful closure of this deal is expected to further bolster the company's market position.
TD Cowen's outlook for ExxonMobil remains highly optimistic, with the firm maintaining its stance that the oil and gas giant is a Top Pick in the sector. This sentiment is backed by the company's solid financial performance and strategic initiatives poised to contribute to its growth trajectory.
InvestingPro Insights
ExxonMobil (NYSE:XOM) has demonstrated a strong financial performance in the recent past, which is reflected in the real-time data from InvestingPro. With a market capitalization of $471.82 billion and a steady P/E ratio of 14.64, the company stands as a formidable player in the Oil, Gas & Consumable Fuels industry. This financial stability is underscored by the company's ability to maintain dividend payments for 54 consecutive years, showcasing a commitment to shareholder returns.
InvestingPro Tips highlight that ExxonMobil has seen 9 analysts revise their earnings upwards for the upcoming period, indicating potential for continued strong performance. Moreover, the stock's low price volatility and its operation with a moderate level of debt provide a sense of security for investors. These factors, combined with the stock trading near its 52-week high and a strong return over the last three months of 17.45%, paint a picture of a company on a stable growth path.
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