Canaccord Genuity Initiates Coverage of Chevron with a "Buy" Rating (CVX)

Canaccord Genuity Initiates Coverage of Chevron with a “Buy” Rating (CVX)

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Canaccord Genuity reported on Friday that they are initiating coverage of energy company, Chevron Corporation(CVX).

The firm has begun coverage of CVX with a “Buy” rating and $136 price target. This price target suggests a 15% increase from the stock’s current price of $115.

An analyst from the firm commented, “in Chevron’s case, not only do we see the best growth in volumes and cash flows in the peer group but importantly, relatively little near-term stress on its balance sheet. This comes from a combination of 1) easily the highest cash flow/bbl in the peer group, giving it much greater flexibility to go through the current high capex phase and 2) the strongest balance sheet, with nearly $10bn of net cash at YE12. We think Chevron should be able to sustain buybacks at $5bn pa in 2013-14, giving a distribution yield (dividends + buybacks) of ~5.5% and still having broadly no net debt.”

Chevron shares were mostly flat during Friday morning trading. The stock has increased 7% in the past year.

The Bottom Line
Shares of Chevron Corporation(CVX) have a 3.13% yield, based on Friday morning’s price of $115.03.

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.

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