ExxonMobil (XOM) Has its Rating Cut at Goldman Sachs

Analyst at Goldman Sachs took the hatchet to major integrated oil company ExxonMobil (NYSE: XOM) Friday, cutting their rating from Buy to Neutral and their price target from $100 to $97.00. The firm cited a lower E&P outlook and an investors shift fo hiher beta names.

Analysts led by Arjun N. Murti commented, "We have downgraded ExxonMobil shares to Neutral from Buy for two primary reasons: (1) we have a less robust outlook for its E&P production and profitability in 2013 versus our more optimistic expectations at the time we upgraded its shares; and (2) we expect to see increased investor appetite for higher beta energy equities as we move into 2013 given our economists' and portfolio strategists' expectations for recovering global GDP growth"

They said they now don't expect a secular upturn in the super majors ExxonMobil (NYSE: XOM) and Chevron Corporation (NYSE: CVX) until 2014 given recent E&P segment disappointments at both companies.

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 $88.58 yesterday.

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