Exxon Mobil Corp (XOM) revealed on Monday plans to cut its workforce in Europe by up to 1,600 across its affiliates by the end of next year as part of a global restructuring.
Exxon Mobil shares closed higher for the fourth time in the past ten trading sessions in New York on Monday. The stock went up 2.30% ($0.76) to $33.74, after touching an intraday high at $33.75, or a price level not seen since October 1st ($34.10).
Shares of Exxon Mobil Corporation have retreated 51.65% so far in 2020 compared with a 5.50% gain for the benchmark index, S&P 500 (SPX).
In 2019, Exxon Mobil Corp’s stock went up 2.33%, thus, it again underperformed the S&P 500, which registered a 28.88% gain.
According to Exxon, country-specific reductions will be made depending on the company’s local business footprint and market conditions, as it attempts to deal with subdued demand for its products and lower crude oil prices as a result of the pandemic.
In September, the oil major announced voluntary layoffs in Australia and said there would be more reductions internationally going into 2021.
Similar to other leading energy companies, Exxon’s cost cutting efforts aim at cash preservation amid a bleak energy price outlook.
Analyst stock price forecast and recommendation
According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Exxon Mobil’s stock price, have a median target of $45.50, with a high estimate of $77.00 and a low estimate of $33.00. The median estimate represents a 34.85% upside compared to the closing price of $33.74 on October 5th.
The same media also reported that at least 18 out of 26 surveyed investment analysts had rated Exxon Mobil’s stock as “Hold”, while 4 – as “Buy”. On the other hand, other 4 analysts had recommended selling the stock.