Exxon Mobil Likely To Deliver A Combination Of 'Industry Leading Returns, Dividend Growth And Solid Shareholder Returns'

Wells Fargo analysts Roger D. Read and Lauren Hendrix reiterated an Outperform rating on Exxon Mobil Corporation XOM, assuring the company remains one of their top picks in the oil and gas sector. The analysts believe it's unlikely for the company to deliver much production growth. However, they believe the firm can post "industry leading returns, dividend growth [as it has for 34 consecutive years] and solid shareholder returns."

Related Link: Chevron, Exxon Shareholders Vote On A More Proactive Approach To Climate Change

The analysts went on to explain that, in their view, Exxon Mobil's "diversified business model, focus on risk-adjusted returns and project management track record" are strong positives in the current market. However, they decided not to adjust their EPS estimates, which stand at $0.55 for the ongoing quarter, and at $2.62 for the full year, but pointed out that these figures leave room for some upside given the recuperating oil prices.

The analysts set a valuation range of $93 to $98 for shares of Exxon Mobil, based on their EPS estimate of $4.76 for fiscal 2018.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

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Posted In: Analyst ColorLong IdeasPrice TargetCommoditiesReiterationMarketsAnalyst RatingsTrading IdeasLauren HendrixRoger D. ReadWells Fargo
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