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Chevron downgraded to Market Perform ahead of takeover at Bernstein
The Fly

Chevron downgraded to Market Perform ahead of takeover at Bernstein

Bernstein analyst Bob Brackett last night downgraded Chevron to Market Perform from Outperform with a price target of $167, down from $183. The analyst worries about the direction of oil price in the coming quarters. The firm sees balance requiring a “strong and nimble OPEC hand,” but worries about their short-term track record. It reduced its oil price outlook for the next 18 months by a “modest” $5 to $75 per barrel. For Chevron shares, Bernstein sees roughly 6% upside but with the merger math of Hess Corp. (HES) shareholders receiving 1.025 shares of Chevron, a successful close yields 16% upside in Hess.

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