Chevron Stock Buy Rating Affirmed with Raised Price Target and Strong Growth Prospects

Analyst Roger Read of Wells Fargo maintained a Buy rating on Chevron (CVX – Research Report), boosting the price target to $198.00.

Roger Read has given his Buy rating due to a combination of factors that indicate Chevron’s strong financial performance and favorable prospects. The adjustment of the price target to $198 from $185 reflects updated oil price decks, suggesting a positive outlook on the energy sector. Read’s analysis points to a raised Q1’24 EPS estimate to $2.99, which is slightly above consensus, signaling confidence in Chevron’s earnings potential. This optimism stems from higher liquids realizations, disciplined capital expenditures, and strategic buybacks, which are expected to align with the high-end of company guidance.

Additionally, Chevron’s production growth, particularly from the Permian and DJ Basins, is anticipated to be robust, contributing to the Buy rating. Despite some asset sales, the growth forecast remains strong and is expected to continue beyond 2025. The upcoming quarterly conference call topics, such as the TCO expansion and updates on Permian performance, as well as the company’s ongoing commitment to shareholder returns and its ventures into the energy transition space, further support the positive sentiment. Read’s comprehensive analysis suggests that these elements combined present a compelling case for the potential appreciation of Chevron’s stock.

CVX’s price has also changed slightly for the past six months – from $166.930 to $160.440, which is a -3.89% drop .

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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.