Chevron upgraded to outperform from sector perform, target price lifted at RBC

Chevron Corp. (CVX) was upgraded to outperform from sector perform by RBC analysts, who lifted their price target to $180 per share from $165. The oil giant has used its premium multiple to make acquisitions in recent years, such as the recent purchase of PDC Energy (PDCE), Biraj Borkhataria, associate director of European research, told clients in a note on Thursday. "Looking forward, we believe the macro environment is likely to remain volatile, however weaker end product demand and OPEC+ managing the oil market leaves CVX's upstream heavy weighting well-placed. This combined with its fortress balance sheet and commitment to remaining disciplined through organic and inorganic activity should prove defensive over time," said Borkhataria. RBC's upgrade comes a day after JPMorgan Chase & Co. lifted its own rating on Chevron to buy, with similar rationale, saying the company's "defensive characteristics" make it well-positioned for economic uncertainty. Shares of Chevron closed 1.6% to $150.62 a share.

-Barbara Kollmeyer

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06-01-23 0206ET

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