Goldman downgrades Exxon to sell, says there's no 'compelling case' to own the stock

Oil storage tanks and refining facilities sit at the Esso oil refinery, operated by Exxon Mobil Corp. in Fawley, U.K.
Simon Dawson | Bloomberg | Getty Images

(This story is for CNBC PRO subscribers only.)

Following Exxon's disappointing fourth quarter earnings results, Goldman Sachs downgraded the stock to a sell rating Monday, saying "more compelling returns opportunities exist both among the global majors and global large cap stocks outside of energy."

The firm pointed to Exxon's lack of free cash flow that will limit capital returns, as well as an elevated valuation relative to peers as reasons behind the downgrade. Analyst Neil Mehta also cut his target on Exxon from $72 to $59, which is 5% below where the stock closed Friday.

More In Pro News and Analysis

CNBC ProThese companies reporting earnings next week usually beat expectations and see their stocks rise
CNBC ProYields are driving the market action. Here's what chart analysts are watching before making a move
CNBC ProTop investor and author Charles Ellis talks meme stocks, crypto and how anyone can beat the market