TD Cowen analyst Jason Gabelman maintained a Hold rating on Chevron today and set a price target of $160.00.
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Jason Gabelman’s rating is based on a combination of factors surrounding Chevron’s financial outlook and strategic initiatives. The company’s forecast for free cash flow (FCF) growth aligns with market expectations, but the baseline FCF for 2024 is projected to be lower than previously anticipated. This lower baseline is partly due to reduced results in refining and marketing, although this is expected to rebound in subsequent years.
Furthermore, while Chevron has outlined significant growth in FCF by 2030, much of this growth is already well-communicated and known to the market, reducing the potential for surprise upside. The company’s exploration activities are still in early stages and unlikely to impact near-term results. Additionally, Chevron’s production growth is expected to be more substantial in the mid-term rather than immediately, with a significant portion occurring by 2027. These factors contribute to the decision to maintain a Hold rating, reflecting a balanced view of potential risks and opportunities.
In another report released on November 10, Barclays also maintained a Hold rating on the stock with a $158.00 price target.
Based on the recent corporate insider activity of 52 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.