What Wall Street Analysts Think about Chevron


May. 21 2019, Published 8:07 a.m. ET

Analyst ratings for Chevron

Chevron (CVX) has the third-largest market cap of around $233 billion. As the graph below shows, 18 (or 75%) out of the 24 analysts covering Chevron have rated it a “buy” in May. The remaining six analysts (or 25%) have rated Chevron a “hold.” Stocks with a lower percentage of “buy” ratings include BP (BP) and ExxonMobil (XOM). The percentage of “buy” ratings for BP and ExxonMobil stand at 55% and 23%, respectively.

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Changes in target prices

Recently, Independent Research raised its target price on Chevron from $128 to $132. The firm has a “hold” rating on the stock. However, HSBC, which also has a “hold” rating on the stock, has lowered its target price from $133 to $132. Chevron’s mean target price stands at $140 per share, which implies a 15% gain from the current level.

Why analysts like Chevron

In the first quarter, Chevron continued to improve its financials and return wealth to shareholders. The company paid $2.2 billion in dividends and repaid $1.6 billion of debt. Chevron’s total capital and exploratory spending stood at $4.7 billion in Q1 2019. Most of Chevron’s capex went towards its promising Upstream segment.

Chevron has a strong, expanding, and diverse upstream portfolio. In the first quarter, Chevron’s upstream volumes grew by 7% YoY to 3.04 MM boed (million barrels of oil equivalent a day) in Q1 2019. This is expected to continue in the coming quarters. The company expects its upstream volumes to grow in the range of 4% to 7% in 2019.

It’s no surprise that with an expanding upstream portfolio, most of the analysts hold a favorable opinion on Chevron.


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