UBS reiterates Buy rating on Chevron stock with $197 price target

Investing.com - UBS has reiterated its Buy rating on Chevron (NYSE:CVX) with a price target of $197.00 following the company’s 2025 Investor Day. This target aligns with the stock’s current trading price of $156.01, suggesting significant upside potential. InvestingPro data indicates Chevron is currently undervalued based on its Fair Value assessment.

The investment bank noted that while Chevron’s investor presentation lacked "a big splash," the updates across the company’s portfolio support both near-term and long-term outlooks for the energy giant. As a prominent player in the Oil, Gas & Consumable Fuels industry, Chevron has maintained dividend payments for an impressive 55 consecutive years, with a current dividend yield of 4.46%.

UBS highlighted that Chevron’s near-term earnings and free cash flow are supported by lower capital expenditures and operating expenses, along with higher run-rate production across its portfolio. With $15.4 billion in levered free cash flow and a healthy 5% free cash flow yield over the last twelve months, the company demonstrates strong financial fundamentals.

For the longer term, UBS sees potential upside to Chevron’s 2030 targets, supported by higher volume growth, additional cost reductions beyond the company’s 2027 goal, and technology gains in the Permian Basin.

The firm’s analysis suggests Chevron remains well-positioned in both immediate market conditions and for future growth opportunities in the energy sector.

In other recent news, Chevron Corporation reported its third-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an adjusted earnings per share of $1.85, exceeding the forecasted $1.75, and its revenue reached $49.73 billion, surpassing the anticipated $47.26 billion. In addition to these financial results, Chevron announced a transition in its leadership team, with Alana K. Knowles planning to retire in April 2026 and Amit R. Ghai set to succeed her as Controller in March 2026. Analysts have also weighed in on Chevron’s performance and strategic direction. RBC Capital reiterated its Outperform rating with a $175 price target, citing consistency in the company’s strategic adjustments. Piper Sandler adjusted its price target slightly to $168 while maintaining an Overweight rating, noting changes in capital expenditure and cost savings targets. Goldman Sachs maintained a Buy rating with a $177 price target, highlighting Chevron’s strong cash generation and steady shareholder returns. These developments reflect a period of significant activity and strategic focus for Chevron.

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