What's Going On With ExxonMobil Stock? Goldman Sachs Analyst Downgrades Oil Giant

Shares of oil giant ExxonMobil Corp XOM are moving to the downside Monday after Goldman Sachs downgraded the stock.

Here’s what investors need to know.

The XOM Analyst: Goldman Sachs analyst Neil Mehta downgraded Exxon from a Buy to a Neutral rating, and set a $125 price target on the stock. Shares are trading around the $116 level Monday morning.

See Also: Exxon's Q1 Earnings Beat - Higher Production Volume, Improved Margins

Exxon has a less compelling valuation after the oil giant's massive multi-year run, Mehta says, noting some non-oil tailwinds — refining margins, chemicals, and global gas prices — are abating.

The analyst said he still sees potential in the energy sector and remains optimistic about oil prices in the long term.

Exxon’s cost-cutting, leadership changes, long-term project investments, and stronger conviction on stock repurchases and divided yields helped drive a structural re-rate after years of underperformance.

Earnings By The Numbers: Exxon last Friday beat consensus estimates on the top and bottom lines, reporting an EPS of $2.83, on revenues of $86.56 billion.

Price action: Shares of Exxon are trading 1.06% lower to $117.09, according to data from Benzinga Pro.

Next: Economist Says Stock Market Will Witness Largest Crash Since 1929

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