UBS reiterates Buy rating on Chevron stock ahead of Q2 results

Published 11/07/2025, 14:52
UBS reiterates Buy rating on Chevron stock ahead of Q2 results

Investing.com - UBS maintained its Buy rating and $177.00 price target on Chevron (NYSE:CVX) ahead of the oil giant’s second-quarter 2025 earnings report, due in 21 days. According to InvestingPro data, 4 analysts have recently revised their earnings estimates upward, with the highest target reaching $186.

The investment bank expects Chevron to report lower quarter-over-quarter earnings due to weakness in oil prices, but anticipates strong operational performance across the company’s Permian Basin, Gulf of America, and Tengizchevroil (TCO) assets. The company maintains strong financials with an EBITDA of $38.5 billion and operates with a moderate debt level, showing a healthy debt-to-equity ratio of 0.2.InvestingPro analysis reveals 12 additional key insights about Chevron’s financial health and market position. Subscribers gain access to comprehensive financial metrics and expert analysis through the Pro Research Report.

UBS notes that the pending Hess Corporation (NYSE:HES) acquisition remains the primary focus for Chevron investors, with the firm forecasting the transaction will close in the third quarter of 2025.

The narrowing spread between the two companies’ share prices to approximately 4% suggests both event-driven and fundamental investors are leaning toward a favorable ruling on the acquisition, according to UBS.

The investment bank identifies Chevron’s November Analyst Day as the next key catalyst following the expected Hess transaction closure, where the company is anticipated to outline its growth strategy.

In other recent news, Chevron Corp. is implementing a restructuring strategy to streamline operations and reduce costs by up to $3 billion by 2026. The company plans to consolidate its offshore and shale assets under unified management and establish service centers in Manila and Buenos Aires for finance, human resources, and IT functions. Chevron is also seeking bids for its 50% stake in Singapore Refining Co., with potential buyers including joint venture partner PetroChina and Glencore (OTC:GLNCY). Beyond this, Chevron is exploring the sale of other Asian assets, such as terminal and fuel storage facilities in Australia and the Philippines. Additionally, Barclays (LON:BARC) has reiterated its Equalweight rating on Chevron with a price target of $152, noting that the Hess acquisition is now modestly accretive to Chevron’s cash flow multiples. In Kazakhstan, Chevron’s Tengizchevroil has successfully shipped its first oil to Germany via the Russian Druzhba pipeline. Meanwhile, Kazakhstan’s energy ministry has terminated plans for a gas processing plant at the Karachaganak field, in which Chevron holds an 18% stake, and is seeking domestic partners for the project. These developments highlight Chevron’s ongoing efforts to optimize its portfolio and improve operational efficiency.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.