HSBC Downgrades Chevron (CVX) to Hold, Lowers PT

Chevron Corporation (NYSE:CVX) is one of the 10 Best Oil and Gas Stocks to Buy Now. On May 13, HSBC analysts downgraded Chevron Corporation (NYSE:CVX) from a “Buy” to a “Hold” rating and reduced the price target from $176 to $158.

This decision came after the company announced it would reduce its share buyback program when it released its first-quarter earnings.

Chevron Corporation’s (NYSE:CVX) Chief Financial Officer, Eimear Bonner, said that the company’s share repurchases for 2025 might be between $11.5 billion and $13 billion, which would be in the lower end of the company’s guidance of $10 billion to $20 billion.

HSBC analysts pointed out that Chevron Corporation (NYSE:CVX) no longer trades on par with its European competitors in terms of total distribution yield. This change came after the cut in buybacks.

The analysts also noted that Chevron Corporation (NYSE:CVX) is currently trading at a 12-13% discount to Exxon based on expected 2025-26 price-to-cash flow ratios. HSBC analysts believe that this discount is fair given the higher risks associated with Chevron Corporation (NYSE:CVX).

Chevron Corporation (NYSE:CVX) is one of the world’s largest energy corporations. The company produces crude oil and natural gas.

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