Chevron price target raised to $185 from $170 at BofA

BofA raised the firm’s price target on Chevron (CVX) to $185 from $170 and keeps a Buy rating on the shares. Prior to the Hess deal, the firm estimated Chevron upstream 2026 earnings share at 83% and post Hess this becomes 86% versus Exxon Mobil (XOM) at 67%, the analyst noted. Most investors would favor Exxon at a similar valuation because consensus is for crude prices to fall over the remainder of the year, but this “ignores the fact” that Chevron trades at a material discount thanks to its “underappreciated” free cash flow inflection story, which the firm thinks will drive a meaningful rerating, the analyst tells investors.