Chevron (CVX) Stock: $170 Target And Hold Rating

By Amit Chowdhry ● Jul 4, 2022
  • The shares of Chevron Corporation (NYSE: CVX) have received a $170 price target from Truist. These are the details.

The shares of Chevron Corporation (NYSE: CVX) have received a $170 price target from Truist. And Truist analyst Neal Dingmann is maintaining a “Hold” rating on the shares.

Dingmann noted that the majority of the company’s organic growth is expected to come from the Permian through the year-end of 2023 with volumes potentially growing to over 1.0 mmboepd by 2025. But the second-quarter total corporate volumes could come in below where consensus currently sits due to the timing of turnarounds. 

Going forward, Dingmann also cautioned investors from assuming that Chevron will put all post-dividend free cash flow towards repurchases, anticipating its management to take a more conservative long-term view given the current above mid-cycle prices.

“We continue to forecast a significant Permian production ramp that includes associated gas volumes, along with the two recent LNG agreements that should allow for higher gas netbacks than peers assuming attractive international pricing holds. Chevron recently agreed to buy LNG from Cheniere Energy (LNG, Not Rated) and Venture Global LNG for a combined 2.0 mtpa for 15 years starting in ‘27 with some deliveries starting in ’26 and pricing for the LNG linked to HHUB,” wrote Dingmann in a research note.

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