Energy giant Chevron (CVX) received a significant boost in its stock rating after an analyst upgrade, with the potential for a 31% upside predicted. Mizuho analyst Paul Kumar raised his rating on CVX stock from neutral to buy, while also increasing the price target from $205 per share to $209 per share. The consensus rating for CVX stock is currently rated as a moderate buy based on 18 analyst opinions. Kumar’s price target represents a potential increase of 31% over the next year, compared to the consensus prediction of $190.39 per share.
In his note to clients, Kumar expressed confidence in Chevron’s ability to meet its upstream growth outlook. He noted that although the oil mix has fallen below the long-term 50% indicated by CEO Mike Wirth, new well productivity improvements are expected to increase it. This positive outlook on Chevron’s performance led to the upgrade in stock rating and the adjusted price target.
Following the upgrade, CVX stock saw a 1.3% increase in Wednesday morning trading, with approximately 809,000 shares changing hands. However, this is still significantly below the company’s average daily trading volume of around 8 million shares.
With regards to other stock market news, Tower Semiconductor (TSEM) saw a decline in its stock due to a failed merger deal. AMC Entertainment (AMC) faced another lawsuit related to its planned stock conversion, while Coinbase (COIN) experienced a boost in stock price due to a new approval. Interested traders can find more details on these developments in the links provided.
Overall, Chevron’s stock rating upgrade and the projected 31% upside offer a positive outlook for the energy company. Investors will be closely watching Chevron’s performance moving forward, particularly as it aims to meet its upstream growth goals.
