Erste Group analysts changed their rating for ExxonMobil (NYSE:XOM) from Buy to Hold. The analysis highlighted several concerns affecting Exxon Mobil’s performance. They noted that the company’s profitability falls short of the sector average. This situation is exacerbated by a global surplus of crude oil, which has prompted a decline in oil prices. They do not foresee a swift recovery in the oil market.
Furthermore, the analysts pointed out a worsening outlook for Exxon Mobil’s sales and earnings. They anticipate only a modest growth in turnover for the year 2024. Additionally, the expected earnings growth for Exxon Mobil is projected to be lower than the average growth across the global stock market. These factors have influenced the downgrade in the company’s rating.