Analyst Roger Read of Wells Fargo maintained a Buy rating on Hess (HES – Research Report), retaining the price target of $184.00.
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Roger Read has given his Buy rating due to a combination of factors that highlight Hess’s strategic positioning and potential for growth. A key driver is the anticipated merger with Chevron (CVX), which is expected to be finalized following a favorable arbitration ruling in the third quarter of 2025. This merger is seen as a catalyst for Hess, as the company is currently trading at a discount compared to the agreed merger price ratio, suggesting potential for a higher valuation.
Additionally, the resolution of the arbitration dispute with ExxonMobil (XOM) over the Guyana partnership is expected to favor Hess, further solidifying its market position. Even in the scenario where the arbitration outcome is not favorable, Hess is viewed as having significant standalone potential. However, the report also notes that any unfavorable arbitration decision or a decline in commodity prices could negatively impact Hess’s share price performance. Overall, these factors contribute to the positive outlook and the Buy rating for Hess.
According to TipRanks, Read is a 2-star analyst with an average return of 0.2% and a 48.49% success rate. Read covers the Energy sector, focusing on stocks such as EOG Resources, Phillips 66, and Valero Energy.
In another report released on June 24, UBS also reiterated a Buy rating on the stock with a $173.00 price target.