Shares of Exxon Mobil Corp. XOM, -1.42% fell 0.7% in premarket trading Monday, extending losses toward a fresh 9 1/2-year low, after Goldman Sachs said it's time to sell, citing a "challenged" free cash flow outlook and long-term returns on capital employed (ROCE). Analyst Neil Mehta cut his rating on the oil giant to sell, after being at neutral for at least the past three years, and slashed his stock price target to $59 from $72. Mehta said he sees "clear downside risk" to Exxon's stated goal of 15% ROCE for 2025, as his financial models are now pointing to 8% ROCE in 2025, citing "a combination of lower downstream margin assumptions, lower crude price forecasts and risk around execution/capture rates." He also expects downstream and natural gas prices pressuring earnings power over the medium term. The stock dropped 4.1% on Friday to close at the lowest level since September 2010 after the Exxon reported fourth-quarter earnings that missed expectations. The stock has lost ground on 12 of the past 13 sessions through Friday, tumbling 10.8% over the past three months. In comparison, the SPDR Energy Select Sector ETF XLE, -0.29% has declined 9.9% the past three months and the Dow Jones Industrial Average DJIA, +1.21% has gained 3.3%.
https://www.marketwatch.com/story/exxon-mobils-stock-extends-selloff-after-goldman-sachs-says-its-time-to-sell-2020-02-03
2020-02-03 13:55:00Z
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