Chevron (CVX) Rated 'Overweight' by JPMorgan with $176 Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Should l Buy CVX?
Source: Yahoo Finance
- Coverage Resumed: On January 20, JPMorgan resumed coverage of Chevron (CVX) with an 'Overweight' rating and a price target of $176, indicating over 6% upside from current levels, reflecting analysts' optimism about its future performance.
- Cost Savings Program: Chevron is implementing a structural cost savings program expected to deliver $3 billion to $4 billion in annual run-rate savings by 2026, significantly enhancing the company's profitability and financial health.
- AI Project Potential: Chevron is in exclusive talks to provide natural gas-fired power to a data center, leveraging its domestic production capacity of over 3 Bcfd, with first power expected by 2027-28, potentially generating mid-teens unlevered returns on capital.
- Investment Cycle Attractiveness: Following the completion of the Hess merger, analysts believe Chevron is in an attractive phase of its investment cycle, further enhancing its appeal as a long-term investment.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVX is 176.95 USD with a low forecast of 158.00 USD and a high forecast of 206.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 179.230
Low
158.00
Averages
176.95
High
206.00
Current: 179.230
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Supply Concerns Drive Prices: The U.S. capture of former Venezuelan President Maduro on narcoterrorism charges could disrupt oil flows from the country, coupled with escalating tensions with Iran, which further exacerbates market concerns over oil supply, thus driving prices higher.
- Strong Earnings Support: Chevron reported robust fourth-quarter results last month, with production volumes hitting record highs due to the Hess acquisition and expansion projects, leading to higher operating cash flow and industry-leading free cash flow growth, despite a decline in earnings compared to 2024.
- Ongoing Growth Strategy: Chevron made significant strides in its growth strategy, including completing the Hess acquisition, launching the Geismar renewable diesel plant, and making a Final Investment Decision on the Leviathan gas expansion project offshore Israel, expected to be completed by the end of the decade, enhancing its long-term growth outlook.
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- Market Valuation Analysis: The Shiller price-to-earnings ratio indicates that the current market is at a historical high, prompting caution among investors, yet there are still value stocks to consider, especially in a high-valuation environment.
- Chevron's Strong Performance: Chevron (CVX) excels in the oil and gas sector, with a low break-even cost of $30 per barrel and the acquisition of the Stabroek Block in Guyana, positioning it for robust future free cash flow generation.
- Progressive's Profitability: Despite a 30% decline in Progressive (PGR) stock over the past year, its underwriting profitability remains strong, with net premiums of $83 billion last year and a combined ratio of 87.4%, showcasing its competitive edge.
- Dividend Return Appeal: Progressive paid a special dividend of $13.50 per share in December, yielding approximately 6.5% based on its recent closing price, providing an attractive return opportunity for long-term investors.
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- Tech Stock Influence: This milestone was largely driven by strong performances from technology stocks, particularly Nvidia's replacement of Intel, highlighting the market's heightened focus and investment enthusiasm in the artificial intelligence sector.
- Market Rebound: Following a downturn in 2022, the Dow rebounded nearly 13% in 2023, with this breakthrough occurring against the backdrop of the index climbing over 1,100 points, demonstrating a robust market recovery.
- Changing Economic Landscape: Despite concerns over Trump's tariff policies and the impact of AI spending, the market has shown resilience, indicating investor optimism regarding future economic growth.
See More
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- Acquisition Exploration: Williams Companies is exploring the acquisition of natural gas production assets in the U.S., aiming to provide a one-stop energy solution for hyperscale data center clients, thereby enhancing its competitive edge in the energy infrastructure sector.
- Strategic Transformation: Over the past year, the company has positioned itself as a leader in supplying energy for artificial intelligence infrastructure, supplementing its traditional pipeline business with new power generation capabilities, which is expected to bolster future profitability.
- Major Investment Projects: The Socrates project in Ohio is set to come online in the second half of this year, generating 440 megawatts of power, with Meta Platforms signing a purchase agreement, highlighting its strategic importance in meeting data center power demands.
- Future Growth Targets: The company aims to grow its EBITDA at a rate of 5% to 7% annually, with analysts watching to see if it will raise this target at the upcoming analyst day, further driving long-term growth.
See More
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- Competitive Advantage: Following U.S. sanctions on Venezuela, Exxon and Chevron are seizing opportunities in the country, potentially gaining an edge over European rivals like Shell and TotalEnergies, thereby strengthening their market position.
- Strong Stock Performance: Exxon Mobil's stock is currently trading 10.8% above its 20-day simple moving average and 24.4% above its 100-day moving average, with a 37.26% increase over the past 12 months, indicating a robust upward trend.
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