BofA update shows where active managers are putting money
Investing.com - Goldman Sachs raised its price target on Chevron (NYSE:CVX) to $177.00 from $175.00 while maintaining a Buy rating following investor meetings with the company’s executives. The oil giant, currently valued at $313 billion, is trading near its InvestingPro Fair Value, with analysts’ targets ranging from $124 to $186.
The meetings, held on August 4 and August 5, featured Chevron CEO and Chairman Mike Wirth along with investor relations executives Jake Spiering and Randy Sinclair. Goldman Sachs indicated it became "incrementally more constructive" on Chevron’s free cash flow profile after the discussions. InvestingPro data shows the company maintains strong cash flows with a healthy 4.47% dividend yield, having raised dividends for 37 consecutive years.
Key topics during the meetings included free cash flow and capital return guidance, Hess integration, long-term expectations for Guyana operations, Permian production, Gulf of America growth opportunities, and progress on structural cost savings initiatives.
Goldman Sachs expects a "significant inflection" in Chevron’s free cash flow in 2026 with continued growth in 2027 and beyond, supporting stronger capital returns. The firm estimates approximately 9% total capital returns yield in 2026/2027.
The investment bank’s updated price target reflects the completion of Chevron’s Hess acquisition and anticipates volume and free cash flow growth driven by major upstream projects in Kazakhstan, the Gulf of America, and the Permian basin.
In other recent news, Chevron Corporation reported its financial results for the second quarter of 2025, with earnings per share (EPS) of $1.77, slightly exceeding the forecast of $1.75. However, the company’s revenue came in at $44.82 billion, which was below the expected $45.6 billion. Despite the revenue miss, the earnings beat indicates strong operational performance. Additionally, Chevron recently completed its acquisition of Hess Corporation (NYSE:HES). Following this development, Morgan Stanley (NYSE:MS) resumed coverage of Chevron with an Overweight rating, setting a price target of $174.00. The investment bank suggests that the acquisition has removed a significant overhang for Chevron. These recent developments are crucial for investors monitoring Chevron’s strategic and financial trajectory.
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