Stock Market News

Citi upgrades Chevron to ‘buy’ on valuation gap, ‘superior growth’ prospects

2024.11.26 09:37

Citi upgrades Chevron to ‘buy’ on valuation gap, 'superior growth' prospects

Investing.com — Citi on Tuesday upgraded Chevron Corp (NYSE:) to “buy” from “neutral” on valuation gap with peer, with upside from exploration in Namibia and the resolution of the Hess arbitration in 2025.

Despite a modest recovery in Chevron’s stock over the past two months, it has significantly underperformed both ExxonMobil (NYSE:) and the broader this year. Citi noted that Chevron’s valuation trades at a historically wide discount to Exxon, which could reach 20% by 2026-2027 due to Chevron’s “superior growth” prospects.

Citi noted that investors had been reducing their overall exposure to energy stocks, with selloffs in Chevron amid uncertainty over the Guyana arbitration and timing of the Hess transaction. This has discounted its valuation, making an attractive investment opportunity.

Brokerage bumps price target on stock by $40 to $185 citing longer-term growth potential and the exploration. Namibia drilling campaign could serve as a high-impact catalyst in the near term.

Chevron’s $53 billion deal for Hess Corp (NYSE:)., which the brokerage views as “value-neutral”, is critical for growth diversification but hinges on a mid-2025 arbitration ruling. While the outcome remains uncertain, Citi argued that Chevron’s lower valuation shields investors from substantial downside risk.

“The ability to close the deal now depends on a mid-year ruling from an arbitration panel, creating a binary event around which confidentiality means it is impossible for investors to get any real certainty. But we argue that the value-discount now protects the downside, positioning investors for significant upside in a win scenario,” analysts at Citi said

 



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 85,394.88 0.98%
ethereum
Ethereum (ETH) $ 2,224.35 0.33%
tether
Tether (USDT) $ 0.999715 0.01%
xrp
XRP (XRP) $ 2.17 0.89%
bnb
BNB (BNB) $ 605.32 2.78%
solana
Solana (SOL) $ 140.69 3.97%
usd-coin
USDC (USDC) $ 1.00 0.01%
dogecoin
Dogecoin (DOGE) $ 0.204331 1.45%
cardano
Cardano (ADA) $ 0.642389 1.12%
staked-ether
Lido Staked Ether (STETH) $ 2,221.61 0.21%
tron
TRON (TRX) $ 0.23208 0.90%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 85,133.81 0.90%
hedera-hashgraph
Hedera (HBAR) $ 0.246249 15.22%
chainlink
Chainlink (LINK) $ 14.84 0.35%
litecoin
Litecoin (LTC) $ 124.95 2.14%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,652.73 0.42%
stellar
Stellar (XLM) $ 0.30418 6.31%
sui
Sui (SUI) $ 2.84 0.37%
leo-token
LEO Token (LEO) $ 9.75 5.16%
avalanche-2
Avalanche (AVAX) $ 21.64 2.29%
the-open-network
Toncoin (TON) $ 3.29 1.27%
shiba-inu
Shiba Inu (SHIB) $ 0.000014 2.31%
usds
USDS (USDS) $ 1.00 0.00%
mantra-dao
MANTRA (OM) $ 7.44 0.78%
polkadot
Polkadot (DOT) $ 4.64 1.71%
hyperliquid
Hyperliquid (HYPE) $ 19.28 2.50%
weth
WETH (WETH) $ 2,223.50 0.37%
bitcoin-cash
Bitcoin Cash (BCH) $ 310.29 2.18%
ethena-usde
Ethena USDe (USDE) $ 0.999005 0.03%
bitget-token
Bitget Token (BGB) $ 4.04 0.84%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,358.15 0.39%
uniswap
Uniswap (UNI) $ 7.52 0.32%
monero
Monero (XMR) $ 223.25 5.80%
near
NEAR Protocol (NEAR) $ 3.31 7.27%
whitebit
WhiteBIT Coin (WBT) $ 26.46 0.24%
aptos
Aptos (APT) $ 6.42 0.47%
dai
Dai (DAI) $ 1.00 0.02%
ondo-finance
Ondo (ONDO) $ 1.01 1.22%
pepe
Pepe (PEPE) $ 0.000008 4.73%
internet-computer
Internet Computer (ICP) $ 6.48 0.86%
susds
sUSDS (SUSDS) $ 1.04 0.21%
aave
Aave (AAVE) $ 194.04 1.71%
ethereum-classic
Ethereum Classic (ETC) $ 19.06 2.33%
bittensor
Bittensor (TAO) $ 331.21 0.80%
okb
OKB (OKB) $ 45.33 0.49%
gatechain-token
Gate (GT) $ 20.94 0.15%
official-trump
Official Trump (TRUMP) $ 12.96 2.46%
mantle
Mantle (MNT) $ 0.747908 3.75%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 85,396.88 1.01%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.277097 2.05%