Chevron stock rating reiterated at Buy by UBS, price target $197

Investing.com - UBS has reiterated a Buy rating on Chevron (NYSE:CVX) with a price target of $197.00, following Chevron’s disclosure of expected accounting impacts from its Hess transaction. The oil giant, currently trading at $160.56, maintains strong financial metrics according to InvestingPro data, with an overall health score rated as "GOOD" and a 4.26% dividend yield backed by 37 consecutive years of dividend increases.

The oil giant revealed that its third-quarter 2025 GAAP earnings will be negatively affected by transaction and severance expenses related to the Hess acquisition.

Despite these one-time costs, Chevron’s adjusted earnings are expected to slightly benefit from the partial quarter contribution from Hess.

UBS anticipates a "quiet update" when Chevron reports its quarterly results, with limited new information forthcoming.

More comprehensive details regarding upstream volume growth, Hess synergy capture, return on capital plans, and the pro-forma capital expenditure plan are expected to be revealed at Chevron’s Analyst Day scheduled for November 12.

In other recent news, Chevron has issued $5.5 billion in new senior unsecured notes through its subsidiary, Chevron U.S.A. Inc. These notes, with maturities ranging from 2027 to 2035, include both fixed and floating rate options, as detailed in a filing with the Securities and Exchange Commission. Additionally, Vitol and Glencore are preparing formal bids for Chevron’s 50% stake in Singapore’s second-largest refinery, which is valued at approximately $1 billion. The deadline for these final binding bids is set for October. In a move related to its global operations, two Chevron-chartered tankers carrying Venezuelan crude have arrived in U.S. waters, marking the first such imports under a new license granted by Washington. Meanwhile, Melius Research has initiated coverage on Chevron with a Hold rating and set a price target of $155. These developments highlight Chevron’s ongoing strategic initiatives and financial maneuvers in the energy sector.

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