Shares of Chevron Corporation (NYSE: CVX) are up roughly 40% year-to-date but JPMorgan says it’s as far as it goes for some time.
JPMorgan says Chevron stock is fairly valued
On Friday, JPMorgan analyst Phil Gresh downgraded Chevron to “sell” with a price target of $169 – a bold call considering the ongoing war in Ukraine has pushed oil prices to record levels with further doom expected in case of no resolve.
Still, Gresh is convinced that the Chevron stock at $170 is fairly valued. He, however, continues to be bullish on rivals like Exxon, Cenovus, Conoco, Imperial, Occidental, etc. Earlier this week, Warren Buffet’s Berkshire Hathaway disclosed a $5.0 billion stake in Occidental Petroleum.
The analyst expects Brent oil to average around $90 a barrel this year, $85 a barrel in 2023, and $80 a barrel long-term.
Stephanie Link disagrees with JPMorgan’s outlook
Hightower’s Stephanie Link, who has Chevron as her largest holding, disagrees with the sell call. On CNBC’s “Halftime Report”, Link revealed plans of sticking with CVX over the long-term.
This analyst had a neutral on Chevron all the way up. So, to go from neutral to sell, he missed it. It’s up 45% but still yields at 3.30%. It’s a juggernaut because of steady production, lowering capex, they have a huge FCF and have increased buyback to $10 billion and also increased dividend.
Other members o CNBC’s investment committee, including Jim Lebenthal, Jason Snipe, Jon Najarian, and Anastasia Amoroso aren’t convinced of JPMorgan’s outlook on Chevron either. In January, Chevron reported mixed results for its Q4.
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