Update shared on11 Sep 2025
Fair value Increased 0.39%Analysts have raised their price target for Chevron, citing resilient Q2 results, improved refining margins, strong resource depth, and long-term support from rising natural gas demand, partially offset by integration risks post-acquisition, resulting in a modest upward revision of fair value to $168.78.
Analyst Commentary
- Bullish analysts highlight Chevron’s strong second-quarter results, demonstrating resilience and outperformance among integrated oil companies due to a diversified asset portfolio and reliable shareholder returns.
- Upgrades to price targets reflect improved medium-term refining margins and optimism for sustained favorable conditions in the sector.
- Positive sentiment is driven by Chevron’s depth in resources and strategic positioning for future growth within both oil and gas markets.
- Long-term support is seen from anticipated increases in natural gas demand, with upward revisions to future gas price estimates boosting confidence in Chevron’s prospects.
- Bearish analysts caution that post-acquisition integration risks exist, notably regarding Hess Midstream’s reliance on less-certain Bakken development under Chevron’s leadership, reducing the clarity of near-term growth drivers.
What's in the News
- OPEC+ will increase oil output by 137,000 barrels per day in October, potentially impacting market supply and oil prices; Chevron is among the companies affected (WSJ).
- BHP is leading a consortium involving Chevron and major steelmakers to study carbon capture utilization and storage (CCUS) opportunities in China (Bloomberg).
- The Trump administration has permitted Chevron to continue oil operations in Venezuela, following diplomatic discussions and a recent prisoner swap (WSJ).
- Chevron is cutting 575 jobs in Houston as a result of its completed $55B merger with Hess, with reductions effective September 26 (Reuters).
- These strategic developments affect Chevron's global operations, cost structure, and partnerships across core and emerging markets.
Valuation Changes
Summary of Valuation Changes for Chevron
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $168.13 to $168.78.
- The Future P/E for Chevron has significantly fallen from 17.04x to 14.56x.
- The Consensus Revenue Growth forecasts for Chevron has significantly risen from 1.2% per annum to 1.3% per annum.
Disclaimer
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