Chevron (CVX) Downgraded by HSBC, Price Target Cut to $158

Faizan Farooque

Tue, May 13, 2025, 5:40 PM 1 min read

Chevron (CVX, Financials) was downgraded by HSBC to Hold from Buy connected Tuesday, with a reduced terms people of $158, down from $176, pursuing the company's caller determination to standard backmost shareholder buybacks.

Chevron trades astatine $141.62, beneath its revised target, with expert estimates ranging from $124 to $197. HSBC said the downgrade reflects reduced shareholder distributions and the stock's underperformance compared to peers similar Exxon (XOM, Financials) amid softening lipid prices.

The slope noted Chevron's full organisation output nary longer matches that of European peers oregon Exxon, diminishing its comparative attractiveness. Despite the cut, Chevron maintains a 4.83% dividend output and has raised dividends for 37 consecutive years.

Chevron's Q1 2025 adjusted net per stock reached $2.18, beating the statement estimation of $2.15. However, gross came successful astatine $47.6 billion, missing the expected $48.39 billion. The institution returned $6.9 cardinal to shareholders during the 4th done dividends and buybacks.

Chevron besides disclosed it had acquired astir 5% of Hess (HES, Financials), with plans to implicit the merger successful coming months. First lipid was achieved astatine Ballymore successful the Gulf of Mexico, with plans to ramp up accumulation to 300,000 barrels of lipid equivalent per time by 2026.

The institution ended the 4th with a 14% nett indebtedness ratio and said it expects to make $9 cardinal successful incremental escaped currency travel astatine $60 oil, supported by task expansions and outgo discipline.

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This nonfiction archetypal appeared connected GuruFocus.