S&P Capital IQ’s Stewart Glickman explains why he upgraded shares of ExxonMobil to Buy from Hold:
We cut our 12-month target price by $5, to $90, on lower cash flow multiples. Q2 EPS of $1.06 vs. $2.05, missed the Capital IQ consensus view by $0.05. We think earnings quality was better than indicated, given an elevated tax rate and a heavy Q2 refining maintenance impact. Despite weak crude oil prices, international upstream generated profits, with domestic a slight negative. While buybacks look to decelerate in Q3, we think Exxon’s core business is generating solid ROIC and notably above-peer free cash flows. Shares are trading at a more than three-year low and yield 3.5%.
I do my research instead of watching CNBC or Bloomberg. Saudis are going to cut production ( or in other words they may not even be able to extract at the current levels) by the end of summer. US companies are cutting cost and production. Competing over market share by selling oil at a loss is going to stop soon.
they probably end up buying all the small oil companies for peanuts if things gets worse.
On the other hand cutting cost was needed and we could see the stock above 90 dollars soon.
is only airing the talking heads who buy air time from them. Don't trust the shorts on CNBC being negative on Oil. remember CNBC bashing AAPL 300 points before?
Do your dd and don't trust CNBC.
Saudis just announced that they will cut production soon.
HAHAHA die shorts!!
Sentiment: Strong Buy
GS is short oil stocks big time. Anytime oil is up a GS talking head come on CNBC bashing oil.
We get it GS, you are short oil and all you want is for us to sell our shares!
No thanks, I wait for now!
unfortunately, the saving is not passed down to us but is used to keep the oil companies alive and not to forget millions of jobs being lost.
Low oil price is not a good for anyone!
I am not sure if keeping oil prices down is due to oversupply or more political games.
All your scenarios will be obsolete if OPEC stop pumping oil and other oil companies will follow. Lower oil is bad for everyone but China!
If the issue is hugh oil inventory, OPEC and other oil companies should stop pumping more oil.
I am sure the demand is still high as India and China are going to be the biggest importers of oil.