Chevron Up as Bank of America Lifts Stock to Buy on Valuation

Chevron  (CVX) – Get Report shares rose after Bank of America Securities upgraded the oil titan’s stock to buy from neutral, seeing the stock’s 39% drop this year as a buying opportunity.

His share-price target is $96.

Chevron stock “has moved back to levels where the risk/reward is attractive,” analyst Doug Leggate wrote in a commentary cited by CNBC. 

He doesn’t expect investors to turn more bullish on the company until the hefty oil- inventory surplus shrinks.

U.S. petroleum stocks, excluding the Strategic Petroleum Reserve, totaled 1.4 billion barrels in the week ended Sept. 18, according to the Energy Information Administration. Energy demand has slumped since the coronavirus pandemic throttled businesses and consumer demand for fuel.

Chevron shares recently traded at $74.34, up 3.5%.

In July, Chevron agreed to buy oil driller Noble Energy  (NBL) – Get Report for $5 billion in stock in what marks the biggest oil-patch tie-up since the coronavirus pandemic took hold. Including Noble’s debt, the total enterprise value of the deal is $13 billion.

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