Analyst Balaji Krishnamurthy of Goldman Sachs reiterated a Buy rating on Chevron (CVX – Research Report), with a price target of $183.00.
Balaji Krishnamurthy has given his Buy rating due to a combination of factors that highlight Chevron’s strategic growth and financial prospects. One of the key reasons is the expected increase in production and free cash flow, particularly from strategic projects like Tengiz in Kazakhstan, the Permian Basin, and the Gulf of America. These projects are anticipated to significantly boost Chevron’s production capacity and contribute to an additional $10 billion in free cash flow by 2026.
Furthermore, Chevron’s commitment to shareholder returns is a crucial factor in the Buy rating. The company is projected to deliver a capital returns yield of approximately 12% by 2026, demonstrating its dedication to returning value to shareholders. Additionally, Chevron’s cost reduction efforts and operational updates, particularly in Kazakhstan, further solidify its potential for growth and financial stability, making it an attractive investment opportunity.