Standard & Poor's Ratings Services reiterates its Strong Buy opinion on shares of ExxonMobil Corp., Irving, Texas (NYSE: SLB).
S&P analyst Stewart Glickman says ExxonMobil upcoming fourth quarter report should post operating EPS of $1.55, which S&P is trimming from $1.73 to reflect lower oil and gas prices.
S&P is cutting its 2008 EPS estimate by $0.18 to $8.45, and will likewise trim 2009’s forecast by $1.53 to $5.81, and 2010’s by $1.42 to $6.94.
Blending its DCF and net asset valuations into relative valuations reflecting overall equity market conditions, S&P reduces its target price by $3 to $91, an expected enterprise value of 8.6X its 2009 EBITDA estimate, a peer premium.
ExxonMobil is the world’s largest energy corporation with oil and gas assets worldwide