Chevron upgraded to Buy from Neutral at Citi

Citi analyst Alastair Syme upgraded Chevron (CVX) to Buy from Neutral with a price target of $185, up from $145. While the shares have bounced a little in the last two months, Chevron has still substantially underperformed key peer Exxon Mobil (XOM) through 2024, the analyst tells investors in a research note. The firm says there is a valuation discount that should reach 20% to Exxon Mobil by 2026, “an historically wide gap between these two equities.” The discount positions investors to take a view around the unknown outcome of Chevron’s Hess arbitration in 2025, the analyst tells investors in a research note. Citi believes the downside “looks protected” while the upside is “significant.” Added to that is the potential of high-impact exploration in Namibia in the coming months, it adds.