Summary

  • Chevron Corp., an energy sector giant, received a rating upgrade from broker Mizuho.
  • CVX has a consensus mean price target of US$186.4, which is 17.51% higher than the stock’s closing price on Wednesday, August 16, 2023.
  • CVX share price saw a 1% increase to US$160.24 during the premarket hours on August 16, 2023.

One of US’ largest oil companies, Chevron Corp. (NYSE: CVX) received a rating upgrade from Mizuho based on the broker’s positive demand outlook for the oil sector. Mizuho upgraded CVX to ‘buy’ from its previous ‘neutral’ rating.

The broker elevated its price target on the stock from US$205 to US$209. The consensus mean price target on Chevron is US$186.4, as per EODHD/Others data. This is an upside potential of 17.51% on the CVX’s closing price on Wednesday.

CVX has a mean recommendation rating of 2.3 on a scale of one to five. Here, one represents a ‘strong buy’ rating and five represents a ‘strong sell' rating. Among the 28 analysts that have covered the stock, 18 believe it is a ‘strong buy’ or ‘buy’ and 10 have given it a ‘hold’ rating.

CVX Price Chart; Image Source: CVX EODHD/Others

CVX closed at US$158.63 on Wednesday, August 16, 2023. The stock hit its 52-week high of US$189.68 late last year on November 14, 2022.

Mizuho’s positive energy outlook behind CVX’s price surge

Brokerage Mizuho stated a positive outlook for large-cap oil firms as the reason for upgrading CVX to a ‘buy’ rating. The analyst stated that the demand lookout for crude oil between the second half of 2023 and 2025 is expected to improve as recessionary fears subside.

As per Mizuho, CVX, an upstream shale well operator in the U.S., is expected to benefit from increased productivity in 2023 as compared to the previous year. Additionally, Mizuho also stated that Chevron is well positioned to resume large scale share buybacks in Q4 2023 as compared to its peers.

Image source: ©2023 Kalkine®; Data source: EODHD/Others

As the broker announced its rating upgrade, CVX share price saw a 1% increase to US$160.24 premarket on August 16, 2023.

As at the close of trade on August 16, 2023, CVX stock price fell  0.38% to close at USD 158.63. Based on Wednesday’s closing price, CVX has a P/E ratio of 10.10x.

Brokers raise rating and price target on CVX

Alongside Mizuho, other brokers have also raised their ratings on CVX, soon after Chevron announced the acquisition of PDC Energy on August 7, 2023. Chevron also announced the advancement of its strategic collaboration with Cummins Inc. on August 10, 2023.

On August 10, 2023, Wells Fargo Securities raised CVX to an ‘overweight’ rating while lifting the price target on CVX to US$209. Meanwhile, HSBC raised its price target on CVX to US$184, which is 15.99% higher than CVX’s closing price on Wednesday.

Argus Corporation also raised its rating on CVX to ‘buy’ on August 8, 2023, while Scotiabank raised CVX to ‘sector outperform' rating on August 14, 2023.

Société Générale had given CVX a ‘buy’ rating and TD Cowen gave an ‘outperform’ rating to the stock.