Ahead of Chevron Corporation’s (CVX) first quarter earnings report release next Friday, analysts at Jefferies raised the price target on the oil company.
The analysts maintain a “Buy” rating on CVX and see shares now reaching $135, up from the previous target of $125. This new valuation suggests a 17% upside to Thursday’s closing price of $115.59.
However, Jefferies analyst Iain Reid seemed to have a tepid view on the overall oil sector, saying, “The global majors have as a group been a poor investment for some time, underperforming the S&P by a whopping 24% since the beginning of 2012, with the Europeans significantly worse than the US stocks. Absent some growth we think the sector will remain stagnant. Value arguments are not appealing, despite the 28% discount to 2013 market PE’s the group is currently trading on.”
Chevron shares were up 66 cents, or +0.57%, in morning trading on Friday. The stock is up +7.65% year-to-date.
The Bottom Line
Shares of Chevron (CVX) have a dividend yield of 3.11% based on last night’s closing price of $115.59 and the company’s annualized dividend payout of $3.60 per share.
Chevron Corporation (CVX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.