NEW YORK (TheStreet) -- Shares of Exxon Mobil (XOM) - Get Report were down in mid-morning trading on Monday as Goldman Sachs reduced its rating on the stock to "neutral" from "buy" and removed the stock from its "Conviction Buy" list.
The firm also lowered its price target to $93 from $98 on shares of the Irving, TX-based energy company.
This comes after Exxon reported mixed results for the 2016 third quarter on Friday, beating analysts' estimates on earnings but missing Wall Street's projections for revenue.
Goldman had previously seen Exxon as a "defensive winner" but going forward into 2017 and 2018, the firm says that Chevron (CVX) will be "better positioned to generate cash flow, production growth and deliver a multiple re-rating."
"We see few catalysts for Exxon to drive relative outperformance vs. energy, especially in the range-bound commodity price environment," the firm added.
Goldman noted that Exxon has been "hesitant" to look into large-scale mergers and acquisitions recently, adding that this could have given investors more confidence in the company's reserve replacement and growth.
The firm also upgraded Chevron stock to "buy" from "neutral" and added the shares to its "Conviction Buy" list today. Goldman has a $118 price target on Chevron stock.
Additionally, oil prices were sliding this morning after non-OPEC members did not explicitly commit this weekend to joining OPEC's recent output agreement, Reuters reports.
Crude oil (WTI) was down 1.91% to $47.77 per barrel while Brent crude was lower by 2.27% to $48.58 per barrel this morning.
Separately, TheStreet Ratings objectively rated Exxon 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.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, weak operating cash flow and poor profit margins.
You can view the full analysis from the report here: XOM