Chevron (CVX) Jumps 3% on Bank of America Upgrade as Oil Holds $90
Bank of America raised Chevron's price target to $206 from $188, maintaining a Buy rating amid geopolitical tensions and sustained oil prices above $90. The stock hit a one-year high of $191.44 intraday, buoyed by bullish analyst sentiment and robust Permian Basin output growth of 12% year-over-year.
The Hess Corporation acquisition solidifies Chevron's stake in Guyana's Stabroek block, while insiders sold over 1 million shares (~$187M) in Q1. Q4 EPS of $1.52 beat consensus estimates, with Bank of America modeling a $100/bbl floor for crude through Q3—their most aggressive forecast since 2022.
Middle East volatility, including Iranian strikes on Gulf infrastructure, continues to inject risk premiums into energy markets. Chevron's affiliate income streams remain undervalued by analysts, per BofA's Jean Ann Salisbury.
