Exxon Mobil shares rebound on Wednesday, oil major reportedly exploring sale of Malaysian upstream offshore assets

According to a report by Bloomberg, citing sources with knowledge of the matter, Exxon Mobil Corp (XOM) is exploring an opportunity to sell its Malaysian upstream offshore assets for up to $3 billion.

Since the sale considerations are at an early stage, an agreement could still not be reached, the same media reported.

Exxon Mobil shares closed higher for the fifth time in the past twelve trading sessions in New York on Wednesday. The stock went up 1.11% ($0.74) to $67.44, after touching an intraday low at $67.20 and an intraday high at $67.69.

Shares of Exxon Mobil Corporation have retreated 1.10% so far in 2019 compared with a 16.46% gain for the benchmark index, S&P 500 (SPX).

In 2018, Exxon Mobil Corp’s stock went down 18.47%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

Less than two weeks ago, the oil major reached an agreement to sell its oil and gas assets in Norway to Var Energi AS in a deal estimated at $4.5 billion. It is part of Exxon’s plan to divest nearly $15 billion in non-strategic assets by the year 2021.

As far as Asia is concerned, Exxon is likely to sell assets in Vietnam, Indonesia, Thailand, Australia and Malaysia valued at a total of $5 billion, Bloomberg said.

Analyst stock price forecast and recommendation

According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Exxon Mobil’s stock price, have a median target of $77.00, with a high estimate of $100.00 and a low estimate of $63.00. The median estimate represents a 14.18% upside compared to the closing price of $67.44 on October 9th.

The same media also reported that at least 18 out of 25 surveyed investment analysts had rated Exxon Mobil’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

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