On Monday, TD Cowen maintained its Hold rating on Chevron shares (NYSE:CVX), keeping the price target unchanged at $160. The firm's assessment followed Chevron's recent earnings report, which did not meet expectations. The analyst from TD Cowen pointed out that Chevron has been demonstrating solid and consistent results from its operations in the Permian Basin.
Despite the positive performance in the Permian, the analyst noted uncertainties surrounding the Tengizchevroil (TCO) project. The project's completion and its subsequent production ramp-up are subject to OPEC+ quotas, which adds a layer of unpredictability. Additionally, the ongoing arbitration with Hess Corporation (NYSE:HES) is expected to remain unresolved for another year, contributing to the uncertain outlook.
The analyst believes that the market has already fully priced in the potential upsides from both the TCO project and the Permian Basin ramp-up, as per Chevron's guidance. The TCO project-related uncertainties are anticipated to diminish towards the end of 2024, but until then, they may continue to influence the company's stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.