UBS reiterates Buy rating on ExxonMobil (XOM), predicts strong Q2 earnings

2025-07-03 15:35:00

UBS reaffirmed its Buy rating and $130 price target on Exxon Mobil (NYSE:XOM), predicting Q2 2025 adjusted EPS of $1.66, surpassing the $1.52 consensus. Analysts anticipate adjusted upstream net income of $5.16 billion, slightly above the $4.71 billion consensus, with total production volumes of 4.57 mmboepd aligning with Street estimates.

The decline in earnings is attributed to lower oil and gas prices, with Brent crude’s $8 drop expected to create a $1.3 billion headwind. Lower natural gas prices, including Henry Hub and TTF declines, are seen contributing another $160 million drag. UBS also noted the absence of around $100 million in divestment-related earnings that boosted the previous quarter.

Despite short-term challenges, UBS remains optimistic about ExxonMobil’s operational performance, expecting the company to maintain resilience through market fluctuations. The firm praises ExxonMobil’s strong operational execution and projects continued solid performance despite commodity price pressures.