Black Gold Bonanza: Analyst Bets On Chevron, Citing Price Outlook
Portfolio Pulse from Lekha Gupta
Scotiabank analyst Paul Y. Cheng upgraded Chevron Corporation (CVX) to Sector Outperform from Sector Perform and increased the price target to $195 from $170, citing the highest oil torque among peers and optimistic outlook on oil prices. The upgrade reflects expectations of macro tailwinds and a favorable outcome in the arbitration against Exxon Mobil Corporation (XOM) and CNOOC in Guyana. The analyst also raised the FY24 adjusted EPS outlook for Chevron and increased the long-term oil price forecast. Exposure to Chevron can be gained through SPDR Select Sector Fund – Energy Select Sector (XLE) and iShares U.S. Energy ETF (IYE).
April 11, 2024 | 3:56 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Exxon Mobil involved in arbitration with Chevron over Guyana, which could impact investor sentiment depending on the outcome.
While the article mentions Exxon Mobil in the context of arbitration with Chevron, the direct impact on Exxon's stock is uncertain without knowing the outcome. However, it could influence investor sentiment, especially if the arbitration results favor Chevron, but the immediate financial impact is not clear.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Chevron upgraded by Scotiabank to Sector Outperform with a price target increase to $195, reflecting a positive outlook on oil prices and expected macro tailwinds.
The upgrade and price target increase for Chevron by Scotiabank are based on the company's strong position in the oil market, expected macro tailwinds, and a favorable view on the long-term oil price outlook. This positive analyst action is likely to influence investor sentiment and potentially drive the stock price up in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
iShares U.S. Energy ETF (IYE) also offers exposure to Chevron, potentially benefiting from the company's upgraded outlook.
IYE, like XLE, provides exposure to Chevron and thus could benefit from the positive sentiment surrounding Chevron's upgrade and increased price target. This ETF's performance may be positively influenced in the short term as investors react to Chevron's bullish outlook.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
SPDR Select Sector Fund – Energy Select Sector (XLE) offers exposure to Chevron, potentially benefiting from Chevron's positive outlook.
Given that XLE provides exposure to Chevron, the ETF could see positive movement as a result of Chevron's upgrade and optimistic oil market outlook. Investors looking for energy sector exposure might consider XLE more favorably, potentially increasing its price in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70