Goldman Sachs Downgrades Chevron (CVX) to Neutral; More Upside Elsewhere in Sector

April 6, 2021 1:15 AM EDT
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Price: $109.02 --0%

Rating Summary:
    21 Buy, 16 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 27 | Down: 11 | New: 6
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(Updated - April 6, 2021 4:47 AM EDT)

Goldman Sachs analyst Neil Mehta downgraded Chevron (NYSE: CVX) from Buy to Neutral with a price target of $113.00 (from $117.00).

The analyst comments "We downgrade Chevron from Buy to Neutral after multiple years of outperformance versus global majors, particularly since 2016. We continue to have a positive view of the balance sheet, dividend sustainability, growth outlook in the Permian, and free cash flow from the Australia LNG assets. That said, we show in the note that CVX trades at premium to peers on a variety of metrics including EV/DACF, P/E, and FCF yield. While not in our base case, we recognize the Tengiz project in Kazakhstan still faces potential upward pressure from construction cost. Inside, we detail why we see more upside to XOM, where we see a better long-term earnings revision story around Chemicals and costs. We also outline the upside case for COP, where we see higher returns on capital employed and free cash flow generation, particularly following the recent Concho acquisition."

For an analyst ratings summary and ratings history on Chevron click here. For more ratings news on Chevron click here.

Shares of Chevron closed at $104.51 yesterday.

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