Wolfe Research downgraded Exxon Mobil (XOM) from Outperform to Peer Perform on Tuesday.
Analysts cited valuation as the primary driver following a period of significant share price growth. The firm believes the stock is now fully valued based on current oil price assumptions.
This rating change ends Exxon’s five-year tenure as Wolfe’s top pick among major oil companies. The research note indicates the shares are now fairly valued beyond an oil price call.
Wolfe expects the stock to track general sector exposure rather than deliver company-specific outperformance. Exxon’s stock has recently outpaced both the S&P 500 and the broader energy sector.