More than Half of Analysts See Chevron as a “Buy”

Chevron's 4Q15 Earnings Miss Estimates

(Continued from Prior Part)

Chevron’s analysts’ recommendations

In this series, we have discussed Chevron’s (CVX) 4Q15 results, segment analysis, stock performance, and capital expenditure position. In this part, we’ll examine the ratings of analysts covering the stock.

The above table shows that eight of 15 companies have rated Chevron as a “buy,” “overweight,” or “outperform.” The highest 12-month price target for CVX stands at $122, indicating a 41% rise from current levels. Six companies have rated Chevron as a “hold.”

The average 12-month price target for CVX stands at $95, indicating a 10% rise from its current levels. Only one company has given a “sell” rating to Chevron. The lowest 12-month price target for CVX stands at $78, implying a 10% loss from current levels.

The highest price target was set by Cowen, whereas the lowest price target and the “sell” rating were specified by Goldman Sachs. HSBC, Evercore, Scotia Howard Weil, and Cowen have positive recommendations for the stock and have given it price targets exceeding $100 per share. Barclays, RBC Capital Markets, and Wolfe Research have given “equal weight,” “sector perform,” and “peer perform” recommendations on the stock.

CVX’s peers’ analysts’ ratings

Chevron’s peers ExxonMobil (XOM), Royal Dutch Shell (RDS.A), and BP (BP) have been rated as “buys” by 32%, 67%, and 31% of analysts surveyed, respectively.

If you’re looking for exposure to integrated energy sector stocks, you can consider the iShares North American Natural Resources ETF (IGE). The ETF has XOM and CVX in its portfolio. IGE has ~25% exposure to integrated energy stocks.

Browse this series on Market Realist:

• Part 1 - Chevron’s Earnings Miss Analysts’ Estimates in 4Q15

• Part 2 - Chevron’s Segments Suffer across the Board

• Part 3 - Chevron Closes Slightly Higher following Its 4Q15 Results