Exxon Mobil (OP/A): No change to OP/A rating following CEO transition Goldman Sachs August 04, 2005
We reiterate our Outperform rating relative to an Attractive coverage view on Exxon Mobil shares following the announcement of long-running and well- regarded CEO Lee Raymond's intended retirement at year-end. We have confidence that Exxon Mobil remains in excellent hands under Rex Tillerson, Mr. Raymond's designated successor. We continue to view Exxon Mobil as the most disciplined, shareholder friendly management team in industry and we anticipate no change to its long-term returns-driven focus. The strong culture and institutionalization of Exxon Mobil's core values, in our view, transcend any individual, no matter how highly regarded. As investors gain comfort that our $55/bbl WTI oil price forecast for 2006 is conservative and our $5.55 EPS projection for XOM is achievable, we believe XOM can move to a 14X-16X P/E versus 11X today providing on the order of 40% total return upside.
I, Arjun Murti, hereby certify that all of the views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. |
