Chevron placed on ‘positive catalyst watch’ at Citi

Citi analyst Alastair Syme placed Chevron (CVX) on a “90-day positive catalyst watch” after upgrading the shares to Buy with a $185 price target Major oil companies do not usually offer much operational leverage to exploration, but Chevron’s upcoming Namibia drilling could be different, the analyst tells investors in a research note. The firm says Chevron has a high equity stake of 80% “in a postcode where others have found success.” Citi believes high-end success could be $10B-$20B of value, or 3% to +6% on the equity, and, could provide a counterbalance if the Hess outcome was unfavorable.