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Wells Fargo starts coverage of Chevron (CVX) at Outperform with a $128-$140 price target, citing...

Wells Fargo starts coverage of Chevron (CVX) at Outperform with a $128-$140 price target, citing robust production growth, attractive shareholder returns and strong balance sheet. The firm is less enamored of Exxon Mobil (XOM), which it starts at Market Perform with a $96 target, believing slow growth and premium valuation limit upside.
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Comments (4)
  • Phenom1
    , contributor
    Comments (414) | Send Message
    If oil drops significantly, history and energy allocations (gas component) show that ExxonMobil will drop less than Chevron.If oil goes up significantly, Funds will need the mkt cap of XOM when they pile in (see 2008). CVX is a well-run company, but I like XOMs ability to sustain a downturn.
    20 Jun 2013, 05:30 PM Reply Like
  • geologist
    , contributor
    Comments (430) | Send Message
    Exxon does move slow, but they also as you mentioned, do not drop as far as other Majors when the market is down ... they are like a big stable utility, or secure bond. Regards.
    20 Jun 2013, 10:07 PM Reply Like
  • harold1234
    , contributor
    Comments (17) | Send Message
    poor timeing by wells fargo..CHEVRON WILL have lower earnings for the forseable future...increased costs for projects in AUSTRAILIA is a negative factor...harold123
    20 Jun 2013, 11:23 PM Reply Like
  • b10845
    , contributor
    Comments (76) | Send Message
    I also thought that at least price target prediction - $128-$140 - is too rosy. However, CVX 52wk Range is $98.17-$127.40, some 30% move from low to high. Given that volatility maybe the target is not unattainable.
    21 Jun 2013, 01:14 AM Reply Like
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