Exxon Mobil rating has been reduced to neutral by Goldman-GS

Exxon Mobil Corporation (NYSE:XOM) recent exploration and production setback has made Goldman Sachs Group, Inc. (NYSE:GS) to slash it from buy to neutral on Friday.

The Texas based Exxon Mobil Corporation (NYSE:XOM) recent E&P performance was lower than the desired expectations, forecasted this year by Goldman Sachs Group, Inc. (NYSE:GS) early 2012 upbeat outlook that productions will scale positively by 2013 and speed up in 2014-15 phase.

The analysts at Goldman Sachs Group, Inc. (NYSE:GS) said the economists has forecasted a recovery in global GDP growth over the period of 2013, we will incline towards higher beta energy equities over XOM. Our predictions for a material upturn in the super majors now appear to fluctuate until 2014.

Although Exxon Mobil Corporation (NYSE:XOM) defensive characteristics performed well as expected this year, Goldman Sachs Group, Inc. (NYSE:GS) said since investors are moving towards higher-beta energy equities the investment options are less at this time.

In the interim Exxon Mobil Corporation (NYSE:XOM) return on capital employed remained strong but is in a deteriorating. Goldman Sachs Group, Inc. (NYSE:GS) quoted since the oil major is in the middle of heavy capital spending this might affect the near term volume development.

The shares are trading above the company’s 200-day average but below its 50 day mark.

The price target for Exxon Mobil Corporation (NYSE:XOM) was cut from $100 to $97. The new price is +9.5% upside from the closing price of $88.5 on Thursday.

Exxon shares were traded virtually flat on Friday morning around $107.93. Its shares were down by 0.58% in premarket trading on Friday.

The bottom line is that Exxon Mobil Corporation (NYSE:XOM) is not recommended for the time being.

The shares of Goldman Sachs Group, Inc. (NYSE:GS) were up by 3.46% to close at $123.49

The shares of Exxon Mobil Corporation (NYSE:XOM) were up by 0.90% to close at $88.87

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Published by Lisa Ray

Lisa has a Bachelor of Arts in journalism from Purdue University and 3 years of experience in the publishing field.