Standpoint Research Upgrades Chevron (CVX) to Accumulate

Standpoint Research upgraded Chevron (NYSE: CVX) from Hold to Accumulate with a price target of $115.00.

The firm states, "This upgrade is basically a bet that crude oil prices go back to $100-$100 in the next 12-24 months. It is also a bet on flight to quality. Crude oil prices have dropped $30 in less than four months and should be seen as a buying opportunity for those who can look out 12-24 months. This upgrade/reinstatement brings us back to equal-weight from a slight under-weight and is not recommended for those who are already overweight Energy and/or with a short-term time horizon. This is our third Energy recommendation since June 1. On June 15 we reinstated PKD … on July 1 we reinstated GTE (Canada). CVX is currently trading at 7X estimates for next year … 5-yr. ROE is 22.4% … NPM is 10% … earnings purity is 100% … EPS and revenue growth trailing five years is flat … $18 bln in cash … $11 bln in debt … P/B is < 2X … P/CF is < 6X … EV/EBITDA is < 4X. CVX is levered to crude oil and not natural gas."

For more ratings news on Chevron click here and for the rating history of Chevron click here.

Shares of Chevron closed at $95.86 yesterday.

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