Chevron's Price Target Cut at Oppenheimer; Energy Equities Falling (CVX)

Chevron’s Price Target Cut at Oppenheimer; Energy Equities Falling (CVX)


Oil producer Chevron Corporation (CVX) on Wednesday caught some mixed commentary from analysts at Oppenheimer Holdings.

The firm said it cut its price target on CVX from $130 to $120, citing falling energy equities. That new target still suggests a healthy 20% upside to the stock’s Tuesday closing price of $100.24, however.

Oppenheimer also maintained its “Outperform” rating on CVX, commenting, “With liquids representing 68% of production and foreign gas prices indexed to Brent, Chevron has the highest net profit among peers. CVX has $20B cash, more than double the debt. Chevron spent $1B on net share repurchases and $1.6B on dividends last quarter and raised its quarterly dividend by 11%, to $0.90/sh. CVX has the financial flexibility to make a large acquisition that creates shareholder value. We believe a reasonable settlement with the plaintiffs impacted by the oil contamination in Ecuador, but not their representatives, could boost the stock. We have lowered our price target to $120 from $130 to reflect the sharp decline in energy equities YTD.”

Chevron shares fell $1.23, or -1.2%, in premarket trading Wednesday.

The Bottom Line
Shares of Chevron (CVX) have a 3.59% dividend yield, based on last night’s closing stock price of $100.24. The stock has technical support in the $95-$96 price area. If the shares can firm up, we see overhead resistance around the $104-$105 price levels.

Chevron Corporation (CVX) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.