Optimistic Financial Outlook for Chevron with a Buy Rating and $175 Price Target

Goldman Sachs analyst Neil Mehta has maintained their bullish stance on CVX stock, giving a Buy rating today.

Neil Mehta has given his Buy rating due to a combination of factors surrounding Chevron Corporation (CVX). He emphasizes the company’s improving free cash flow (FCF) generation and strong volume outlook, particularly in the Permian region. Mehta also notes Chevron’s strategic priorities, including the execution of the Tengiz project and the potential benefits from the Hess transaction and asset sales. These elements suggest an optimistic future financial performance for the company, supporting the Buy rating.

Moreover, Mehta underscores the attractive relative valuation of Chevron’s stock, which is projected to trade at around a 9% FCF yield in 2025. His analysis leads to a refreshed model with a 12-month price target of $175 per share, indicating an estimated total return of approximately 13%. This valuation, combined with the expected ramp-up of the Tengiz project and the company’s strategic initiatives, underpins Mehta’s constructive stance on Chevron’s investment potential.

In another report released today, Barclays also maintained a Buy rating on the stock with a $203.00 price target.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CVX in relation to earlier this year.

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Chevron (CVX) Company Description:

Chevron Corp. engages in the provision of administrative, financial management, and technology support for energy and chemical operations. It operates through the Upstream and Downstream segments. The Upstream segment consists of exploration, development, and production of crude oil and natural gas; liquefaction, transportation, and regasification associated with liquefied natural gas; transporting crude oil by major international oil export pipelines; processing, transporting, storage, and marketing of natural gas; and a gas-to-liquids plant. The Downstream segment comprises refining of crude oil into petroleum products; marketing of crude oil and refined products; transporting of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. The company was founded in 1906 and is headquartered in San Ramon, CA.