RBC Capital analysts downgraded Exxon Mobil Corporation (NYSE:XOM) to Sector Perform from Outperform, with a price target of $125 on the stock.
The company has performed better than most international competitors in the past year, thanks to strong refining margins and a positive change in how its free cash flow is perceived.
Moving forward, although analysts expect energy markets to continue being unpredictable, the prospects for oil products and gas markets seem less certain compared to 2022. Considering the current circumstances, the analysts believe the company’s earnings momentum and risk-reward are more balanced.