Redburn Atlantic has lowered its rating on Chevron (CVX, Financial) from Neutral to Sell, setting a new price target of $124, a significant drop from the previous target of $156. This downgrade is attributed to the increasingly precarious state of the oil market, which was already under strain even before the announcement of broad U.S. tariffs on April 2. The firm highlights concerns over excess capacity and a declining demand outlook, suggesting the market could soon become oversupplied.
In light of these developments, Redburn predicts that oil prices may fall below $60 per barrel by the end of the year, prompting the adjustment of its forecasts. Along with Chevron, Equinor has also been downgraded to a Sell rating, while Eni has been moved to Neutral. The downgrades reflect the firm's cautious stance on the energy sector amidst these headwinds.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Chevron Corp (CVX, Financial) is $171.29 with a high estimate of $197.00 and a low estimate of $140.00. The average target implies an upside of 24.76% from the current price of $137.30. More detailed estimate data can be found on the Chevron Corp (CVX) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Chevron Corp's (CVX, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Chevron Corp (CVX, Financial) in one year is $155.13, suggesting a upside of 12.99% from the current price of $137.3. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Chevron Corp (CVX) Summary page.
