Argus downgrades Chevron on valuation, prefers Exxon

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

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.