HSBC Downgrades Chevron (CVX), JPMorgan Stays Positive

Chevron Corporation (NYSE:CVX) is one of the 12 Best Oil and Gas Stocks to Buy Right Now. On February 2, HSBC raised its price target on Chevron Corporation (NYSE:CVX) from $169 to $180 but downgraded its rating from Buy to Hold. According to the research note, this update comes despite the research firm’s continued positive view of the company’s mix of cash flow growth and financial discipline.

HSBC analyst Kim Fustier pointed to Chevron Corporation’s (NYSE:CVX) year-to-date gains in share price as the main reason for the downgrade. The analyst noted that the stock’s valuation is stretched thanks to the rally, which has been supported by hopes around Venezuela and higher oil prices. HSBC also noted that Chevron Corporation’s (NYSE:CVX) projected 2026 distribution yield of 7.2% is now lower than that of European competitors.

Also on February 2, JPMorgan raised its price target on Chevron Corporation (NYSE:CVX) from $176 to $181 and kept its Overweight rating. JPMorgan highlighted the company’s attractive investment cycle phase after it concluded the HES merger. The firm also noted that the company’s structural cost reduction efforts are expected to deliver $3 billion to $4 billion in annual run-rate savings by 2026.

Chevron Corporation (NYSE:CVX) is a major American energy company that produces crude oil and natural gas. It also manufactures transportation fuels, lubricants, petrochemicals, and additives.

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Disclosure: None. This article is originally published at Insider Monkey.