Oil Price Rally Drives Chevron, ConocoPhillips, and Valero to 52-Week Highs
Oil prices surged to new highs on Wednesday, driving shares of oil companies Chevron Corp. (CVX), ConocoPhillips (COP), and Valero Energy Corp. (VLO) to 52-week highs.
Chevron stock jumped nearly 2% at close, while COP stock closed up more than 1%, and VLO stock rose 1.59%. The price rally was triggered by the ongoing war in the Middle East, which has strained energy supply through the Strait of Hormuz.
Stifel resumed coverage of ConocoPhillips with a 'Hold' rating and a $148 price target, implying upside of more than 8% from its last close. The analyst noted that COP's shares warrant a premium multiple due to the company's attractive capital-efficient growth through the cycle.
Valero Energy is on track to post its fifth consecutive week of gains amid rising oil prices. UBS raised the firm's price target on Valero to $450 from $355 and maintained a 'Buy' rating on the shares, citing the company's well-positioned value creation due to elevated refining margins.