UBS Cuts Price Target on ExxonMobil (XOM) to $86; Remains Neutral

UBS maintained a Neutral rating on ExxonMobil (NYSE: XOM), and cut the price target to $86.00 (from $90.00), following the company's 2Q earnings report and conference call.

Analyst William Featherston commented, "1) reiterated 2016 capex guidance of $23.2bn (down 25% YoY) but inferred spending would likely come in below budget due to market savings, efficiency gains, & commencing projects on time & on budget; 2) made no change to its 2016 production growth range of ~4.0-4.2 MMBoed (flat YoY); 3) initial seismic images of Skipjack point to comparable resource potential as its Liza discovery (0.8-1.4 BBoe) offshore Guyana; 4) noted there is a "strong case" that the gas from the recent InterOil acquisition in Papua New Guinea will ultimately go to its existing facility at PNG LNG (rather than a separate LNG project); & 5) we lowered 2016-17E EPS from $2.79/$3.77 to $2.38/$3.59 on lower Upstream earnings for 2016 & Downstream earnings for 2017."

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 $88.95 yesterday.

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