UBS Raises Price Target on Chevron (CVX) Following 3Q Earnings and Guidance

UBS reiterated a Neutral rating on Chevron (NYSE: CVX), and raised the price target to $95.00 (from $87.00), following the company's 3Q earnings results and guidance. Adjusted EPS was $1.01, above consensus of $0.76. CVX provided a 2016-17 capex guidance range of ~$25-$28bn and $20-$24bn.

Analyst William Featherston commented, "CVX provided a 2016-17 capex guidance range of ~$25-$28bn (including affiliates) and $20-$24bn, well below 2015 spending of ~$35bn as major capital spending rolls off with several large projects coming on stream. Assuming affiliate spending of ~4bn per annum (excluded in consensus), CVX's '16-17 capex range of ~$21-$24bn and $16-$20bn is well below consensus of ~$28.1bn and $24.9bn, respectively. Meanwhile, CVX expects 2017 volume growth of 13-15% per annum (or ~2.90-3.0 MMBoed by 2017, excluding asset sales), slightly below its prior target of ~3.1 MMBoed but roughly in line with consensus. We estimate CVX can achieve cash flow neutrality after the divi at $55/Bbl Brent, below the $70/Bbl target it outlined in March."

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 $90.88 yesterday.

You May Also Be Interested In

• Adobe (ADBE) PT Lowered to $225 at UBS Amid Plans to Pivot to Freemium Model
• Casey's General Stores (CASY) PT Raised to $975 at Stephens
• UBS Reiterates Neutral Rating on Clorox (CLX) as External Challenges Persist