Wells Fargo downgraded ExxonMobil (XOM) from "Overweight" to "Equal Weight." The change occurred on October 1, 2026. Wells Fargo maintained its $182 price target for XOM.
The downgrade does not reflect a negative view of ExxonMobil's operations. Wells Fargo notes XOM's operations have been reliable despite some setbacks.
The primary reason for the change is a relative valuation call. Analyst Sam Margolin sees more upside in competitor BP (BP). Wells Fargo simultaneously upgraded BP to "Overweight." The firm believes the valuation gap between the two oil majors will converge in BP's favor. This convergence is driven by BP's accelerated debt reduction and resource development.