Chevron, the Energy sector company, was revisited by a Wall Street analyst today. Analyst Jason Gabelman from TD Cowen maintained a Hold rating on the stock and has a $150.00 price target.
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Jason Gabelman has given his Hold rating due to a combination of factors surrounding Chevron’s recent activities and future projections. The company’s acquisition of Hess (HES) is a significant event, with expectations that the free cash flow from the deal will cover additional dividends by 2027 at varying Brent prices. However, there are uncertainties about whether Chevron will increase its buyback pace in 2026 as initially communicated, which adds an element of caution.
Furthermore, while Chevron has outperformed its largest US peer following an arbitration ruling, the stock has not seen a substantial move, possibly due to investors reevaluating their positions post-arbitration. Additionally, Gabelman anticipates a decline in upstream earnings due to lower commodity prices, despite a slight increase in production. These mixed signals, along with adjustments in earnings estimates and potential headwinds from operational challenges, contribute to the Hold rating, reflecting a balanced view of risks and opportunities.
In another report released on July 21, Barclays also maintained a Hold rating on the stock with a $156.00 price target.