Energy
Why Goldman Sachs Now Sees Chevron Better Off Than Exxon Mobil
Published:
Last Updated:
It is not uncommon for an analyst on Wall Street to favor one major peer over another. An October 31 call from Goldman Sachs stands out handily from other key analyst calls in the oil and gas sector.
Chevron Corp. (NYSE: CVX) was raised to Buy from Neutral at Goldman Sachs, and the firm added it to the prized Conviction Buy List. Goldman Sachs raised Chevron’s price target to $118 in this call, versus a prior closing price of $103.82. Chevron’s new consensus analyst price target from Thomson Reuters is $113.33.
Goldman Sachs downgraded Exxon Mobil Corp. (NYSE: XOM) to Neutral from Buy, and the oil and gas giant was removed from the Conviction Buy list. Exxon Mobil’s price target was cut to $93 from $98, but investors might want to take note that Exxon Mobil closed out last week at $84.78. Exxon Mobil has a new consensus price target of $89.00.
What was interesting to see here is that both energy giants have continued to see a drop in their profits. Several issues were cited in the Goldman Sachs note:
Other analysts have keyed in on some of these price targets as well, now that earnings are behind both:
There has been an opposite move in these stocks on Monday. As a reminder, Goldman Sachs caters almost exclusively to a client base made up of institutional investors and high net worth individual investors. In short, the firm is telling the rich” “Buy Chevron, Dump Exxon!”
Investors need to consider that both Exxon Mobil and Chevron are Dow Jones Industrial Average components. On Friday, Chevron shares rose by 3.9% after earnings, and Exxon Mobil fell 2.5% after earnings. Now we are seeing more of the same on Monday:
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.