Morgan Stanley expects lower Street estimates for Chevron

|About: Chevron Corporation (CVX)|By:, SA News Editor

Morgan Stanley maintains its Overweight rating and $135 price target for Chevron (CVX -1.5%) after the company forecasts a drop in Q1 profits, but the firm cuts its Q1 EPS estimate to $2.30 vs. $2.68 prior and $2.75 Wall Street consensus.

Drivers for the earnings cut include lower U.S. volumes vs. expectations for a modest increase, weaker international production volumes due to maintenance activity in Kazakhstan and Canada, and lower international refining crude throughput due to higher maintenance activity.

Despite holding a leading acreage position in the Permian Basin (~2M acres), CVX's U.S. crude volumes are down 5% Y/Y.