DBS analyst Suvro Sarkar has maintained their bullish stance on CVX stock, giving a Buy rating on May 5.
Suvro Sarkar has given his Buy rating due to a combination of factors that highlight Chevron’s strong financial and operational position. The company’s robust earnings and cash flow profile, supported by efficient cost strategies, are expected to remain stable in the near term. Chevron’s upstream segment, particularly with projects in Kazakhstan and the Gulf of Mexico, is a significant growth driver, promising substantial production increases and free cash flow accretion.
Sarkar also points to Chevron’s strategic initiatives in clean energy, such as the Bayou Bend Carbon Capture and Storage hub and renewable diesel projects, which align with future energy transition goals. Additionally, Chevron’s low gearing and commitment to shareholder returns through dividends and share buybacks, even amid potential commodity price volatility, further reinforce the Buy rating. The ongoing acquisition of Hess Corporation, despite some uncertainties, is anticipated to bolster Chevron’s growth prospects, enhancing its market position and overall valuation.
In another report released on May 5, Wells Fargo also maintained a Buy rating on the stock with a $164.00 price target.