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

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

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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 Dividend.com 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.