UPDATE: UBS Downgrades ExxonMobil (XOM) to Neutral; Low Quality 2Q EPS...and Still Trading at a Premium
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Price: $91.53 -0.28%
Rating Summary:
3 Buy, 15 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
3 Buy, 15 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade XOM Now!
(Updated - July 27, 2012 3:10 PM EDT)
UBS downgraded ExxonMobil (NYSE: XOM) from Buy to Neutral. PT maintained at $90.
Analyst, William A. Featherston, said, "Reasons for our downgrade: 1) trading at relative P/E above its 5-yr historical average and above average premium to peers; 2) continued disappointing production trends; 3) risk of reducing pace of share repurchases from 2012’s $20bn; 4) earnings quality increasingly polluted by gains on asset sales; and 5) material outperformance since the September 2011 energy lows vs peers (1,400 bps) and S&P 500 (400 bps)."
"We lowered our 2012-13 production growth forecasts from -3.9%/1.8% to -4.8%/1.3% and EPS to $7.69/$7.71 from $7.87/$7.99, respectively."
The firm notes the stock is trading above its 5-year historical P/E, and average premium to peers.
For an analyst ratings summary and ratings history on ExxonMobil click here. For more ratings news on ExxonMobil click here.
Shares of ExxonMobil closed at $86.52 yesterday, with a 52 week range of $67.03-$87.94.
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UBS downgraded ExxonMobil (NYSE: XOM) from Buy to Neutral. PT maintained at $90.
Analyst, William A. Featherston, said, "Reasons for our downgrade: 1) trading at relative P/E above its 5-yr historical average and above average premium to peers; 2) continued disappointing production trends; 3) risk of reducing pace of share repurchases from 2012’s $20bn; 4) earnings quality increasingly polluted by gains on asset sales; and 5) material outperformance since the September 2011 energy lows vs peers (1,400 bps) and S&P 500 (400 bps)."
"We lowered our 2012-13 production growth forecasts from -3.9%/1.8% to -4.8%/1.3% and EPS to $7.69/$7.71 from $7.87/$7.99, respectively."
The firm notes the stock is trading above its 5-year historical P/E, and average premium to peers.
For an analyst ratings summary and ratings history on ExxonMobil click here. For more ratings news on ExxonMobil click here.
Shares of ExxonMobil closed at $86.52 yesterday, with a 52 week range of $67.03-$87.94.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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