- Chevron (CVX -0.7%) is downgraded to Hold from Buy at Argus following its 16% run-up in total return during the past three months, seeing few positive catalysts in the near term and not expecting CVX's promising new projects to contribute meaningfully to production until Q4
- Argus prefers Exxon Mobil (XOM -0.6%) among this duo, maintaining its Buy rating and raising its price target to $114 from $104 as it contrasts XOM’s plan to curtail capital spending in the coming years with CVX, which continues to spend heavily on new projects; as a result, XOM should enjoy a boost in free cash flow going forward while CVX has struggled to generate free cash flow.