Analyst Boosts Price Forecasts for Chevron and ExxonMobil on Strong Refining
TD Cowen analyst Jason Gabelman raised his price forecasts for Chevron Corporation (CVX) and ExxonMobil Holdings (XOM).
Gabelman maintained a Hold rating for CVX, increasing his price forecast from $205 to $215. He attributes this increase to the company's recent announcement of its Venezuela expansion, which is expected to generate about $1 billion in free cash flow once production reaches 600,000 boe/d.
The analyst expects Chevron to beat third-quarter estimates despite a $1.50-per-share timing headwind. Gabelman also expects an update on Kilby following a permitting pause in Texas and progress on additional projects, but does not expect Chevron to increase its buyback this quarter.
In his analysis of ExxonMobil, Gabelman maintained a Buy rating and boosted the price forecast from $168 to $180. He attributes this increase to the company's strong refining performance, which is expected to drive third-quarter results to beat consensus estimates.