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Investing.com - Morgan Stanley (NYSE:MS) has resumed coverage of Chevron (NYSE:CVX) with an Overweight rating and a price target of $174.00. According to InvestingPro data, the stock is currently trading near its Fair Value, with a market capitalization of $308 billion and a P/E ratio of 19.3.
The investment bank’s decision follows Chevron’s recent closing of its acquisition of Hess Corporation (NYSE:HES), which Morgan Stanley believes has removed a key overhang for the oil giant.
According to Morgan Stanley, the HES deal strengthens Chevron’s business by enhancing growth potential and extending the company’s portfolio duration.
The firm notes that while Chevron’s longer-term outlook remains "less clear than peers," this uncertainty is balanced by the company’s "leading FCF rate of change into 2026."
Morgan Stanley’s $174 price target suggests potential upside for Chevron shares, which have been affected by various market factors including oil price fluctuations and broader energy sector trends.
In other recent news, Chevron Corporation announced its financial results for the second quarter of 2025. The company reported an earnings per share (EPS) of $1.77, slightly exceeding analyst expectations of $1.75. However, Chevron’s revenue came in at $44.82 billion, which was below the anticipated $45.6 billion. These results highlight a mixed financial performance, with earnings surpassing estimates but revenue falling short. Despite the revenue miss, Chevron’s strong operational performance contributed to a positive market sentiment. The earnings beat indicates resilience in Chevron’s operations, even as the company navigates a challenging economic environment. These developments are part of recent trends observed in the company’s financial activities.
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