- Chevron (CVX -0.7%) and Exxon Mobil (XOM +0.3%) are little changed after Mizuho analyst Paul Sankey initiates coverage with respective Buy and Neutral ratings with respective $145 and $81 stock price targets.
- Sankey believes CVX is in a "multi-year sweet spot" with lower capex alongside ~6% annual volume growth through 2020, which he says is "very strong" for a company of CVX's scale.
- CVX's outlook is the mirror image of XOM, which is seeing an increase in capex as it tries to offset lackluster volumes through 2020, Sankey says, adding that he likes XOM's new management team but the turnaround will take time and require an "aggressive" ramp of spending.
- Mizuho's Sankey also starts Occidental Petroleum (OXY -2%) at Buy with a $102 price target, citing visible free cash flow and valuation, a disciplined cash return focus and "unconventional resource scale and execution" that de-risks production and cash flow outlooks.
- ConocoPhillips' (COP -0.7%) relative outperformance in the past year and a lack of "needle-moving near-term catalysts" warrants only a Neutral rating from Sankey.
- Now read: Exxon Mobil - Oil Prices Are Recovering Why Hasn't This Oil Major
Original article