Wednesday, September 15, 2010

RBC Capital Downgrades Exxon (NYSE:XOM)

Exxon Mobil Corp. (NYSE:XOM) was downgraded by RBC Capital Markets on their significant exposure to the natural gas market, which prices have continue to be weak on enormous supply.

This is a nod toward the acquisition of XTO Energy earlier in the year, which made Exxon the largest natural gas producer in the U.S.

Discoveries of huge reserves of natural gas have put downward pressure on all natural gas companies who aren't diversified, and those that aren't, have been scrambling to pick up oil assets to counter the weak natural gas prices.

Consequently, RBC downgraded them from "Outperform" to "Sector Perform," while lowering the price target over the next 12 months to $70 a share from $76 a share.

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