5 big analyst cuts: ExxonMobil downgraded at Goldman | Pro Recap

By Davit Kirakosyan

Investing.com -- Here is your Pro Recap of the biggest analyst cuts you may have missed today.

Exxon Mobil downgraded at Goldman, shares drop

Goldman Sachs downgraded Exxon Mobil (NYSE:XOM) to Neutral from Buy with a price target of $125.00 following strong outperformance in stock, which is up about 37% over the last 12 months as higher oil prices boosted the company’s profits to record levels.

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Following the downgrade, the shares fell more than 3% today.

The firm highlighted that since its upgrade in late 2020, the company’s stock has generated a remarkable 175% return. According to the firm, this "structural re-rate" is attributable to factors such as reduced costs, changes in leadership, investments in attractive long-term initiatives, and increased investor trust in the company's dividend sustainability and share buyback program.

The firm further states that ExxonMobil's current valuation better reflects the structural turnaround in the business, with shares trading at a 7% FCF yield on 2024 estimates at $85/b Brent.

The company reported its Q1 results on Friday, beating both EPS and revenue estimates.

Doximity shares fall after Wells Fargo downgrade

Wells Fargo downgraded Doximity (NYSE:DOCS) to Equal Weight from Overweight and cut its price target to $37.00 from $39.00, noting its survey highlights resilience, but pharma budget growth limits the upside prospects for Doximity's shares.

"Our proprietary Doximity client survey suggests digital 2023 ad budgets are growing mid-to-high-single digits," said the firm, noting this is a deceleration from its previously anticipated low double-digit growth.

Shares close more than 2% lower today and are currently trading nearly 2% lower after-hours.

The company is set to report its Q4/23 on May 17.

3 more downgrades

BMO Capital downgraded Check Point Software Technologies (NASDAQ:CHKP) to Market Perform from Outperform and cut its price target to $133.00 from $140.00.

Shares fell nearly 7% today after the company reported its Q1 results, with revenue coming in at $566 million, missing the consensus estimate of $569.13M. EPS was $1.80, compared to the consensus estimate of $1.74.

UBS downgraded TAL Education (NYSE:TAL)l to Neutral from Buy with a price target of $6.20. Shares fell nearly 2% today.

The company reported its Q1 results last week, beating Street expectations.

ArcBest (NASDAQ:ARCB) shares fell nearly 3% today after BofA Securities downgraded the company to Underperform from Neutral and cut its price target to $91.00 from $101.00.

The company reported its Q1 results on Friday, with both EPS and revenues coming in worse than the consensus estimates.