Chevron upgraded to Buy from Hold at Melius Research

Melius Research analyst James West upgraded Chevron (CVX) to Buy from Hold with a price target of $205, up from $162. The company is well positioned as it increases shareholder returns and high-impact exploration, the analyst tells investors in a research note. Melius says Chevron is shifting to cash generation in the Permian Basin. The company anticipates drilling at least 10 to 15 exploration wells, with the Gulf of America, Libya, Namibia,Nigeria, Angola, Suriname, Brazil, and Guyana representing “compelling areas for exploration activity,” contends the firm. Melius sees Venezuela as a growth driver for Chevron, with production expected to increase by 50% over the next two years in the country.