DBS analyst Suvro Sarkar has maintained their bullish stance on CVX stock, giving a Buy rating yesterday.
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Suvro Sarkar has given his Buy rating due to a combination of factors that highlight Chevron’s promising growth trajectory and solid financial health. One of the main drivers of this positive outlook is Chevron’s impressive production growth, particularly in the Permian Basin, alongside the start of key projects in the Gulf of Mexico and Kazakhstan, which are expected to bolster long-term development. Additionally, Chevron’s strategic initiatives in decarbonization and clean energy projects, such as carbon capture and renewable diesel, position the company well for future energy transitions.
Chevron’s strong cash flow profile and low gearing further strengthen its financial position, allowing it to deliver substantial returns to shareholders through dividends and share repurchases. The company’s financial discipline is evident in its record cash returns to shareholders and a robust free cash flow to sales ratio. Moreover, the ongoing acquisition of Hess Corporation, although carrying some uncertainties, is expected to enhance Chevron’s growth prospects and improve investor sentiment. Despite recent underperformance, the anticipated organic and inorganic growth, supported by a favorable US administration, underpins the Buy rating with a target price of USD182.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $171.00 price target.