Shares of the energy company could be overvalued, according to Tudor Pickering Holt analysts, Barron's reports.
The firm downgraded Exxon Mobil to "sell" from "hold" because of its premium valuation.
"We see no reason for Exxon to continue to trade at a significant premium to its integrated peers with better risk adjusted dividend yields availableelsewhere," analysts added, according to Barron's. "It no longer has the stand-out balance sheet."
The stock trades at 25.1 times its forward earnings, while its competitors BP (BP) and Total (TOT) trade at a multiple of 19.4 and 14.7, respectively. Chevron Corp. (CVX), however, trades at 36.2 times its earnings.
"[W]e struggle to see where [Exxon Mobil's] medium to long-term growth comes from given the majority of its pre-Final Investment Decision projects are challenged in our view," analysts noted, Barron's added.
Additionally, Exxon Mobil will release its 2015 fourth quarter financial results next Tuesday before the market open.
Separately, Exxon Mobil has a "hold" rating and a letter grade of C at TheStreet Ratings because of its reasonable valuation levels, largely solid financial position, generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: XOM
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.