Why Is Exxon Mobil (XOM) Taking Cuba To Court Again?

Exxon Mobil Corporation (NYSE:XOM) is one of the 10 Best Major Stocks to Buy According to Analysts. On July 3, RBC Capital analyst Biraj Borkhataria reiterated a Hold rating on Exxon Mobil Corporation (NYSE:XOM) stock and set a target price of $180. The firm’s price target reflects 32% upside from current levels, which sits just above the median analyst upside on Wall Street of 27%.

Earlier on June 23, the US Supreme Court allowed XOM to sue Cuban state-owned companies over properties seized decades ago under former leader Fidel Castro. The court ruled that Cuba’s government-owned companies cannot use legal protections that usually prevent foreign governments from being sued in US courts. This decision allowed the company’s case, filed in 2019, to move forward. Moreover, the 6-3 decision allows the oil giant to seek over $1 billion in compensation for assets seized during the 1960 Cuban Revolution. Exxon claimed that a Cuban company, CIMEX, illegally used a refinery and gas stations that had originally belonged to Standard Oil, which later became part of Exxon. The case will return to a lower court for further deliberations on CIMEX’s potential liability.

Exxon Mobil Corporation (NYSE:XOM) is one of the world’s largest integrated energy companies, with operations spanning oil and natural gas exploration, production, and refining. The company also manufactures fuels, petrochemicals, lubricants, and advanced plastics, while investing in lower-emission initiatives such as carbon capture and lithium production.

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