CS boosts Chevron target price by almost 10%

• Credit Suisse boosts its target-price for Chevron (NYSE:CVX) to $120 from $110 (yesterday's close: $115.39). Rating remains Neutral.
• "CVX have a number of advantages that are becoming more widely appreciated. Once the large investment megaprojects come on stream, then the share of long duration cashflow rises. As CVX shift Capex into the Permian, then the reinvestment capital intensity dramatically improves. The market has caught wind of this and has been marking up share prices accordingly. Indeed, post Tengiz, we believe the FCF yield should expand towards 10% (in the early 2020s). This is attractive.
• "Management need to provide a bridge to this brighter future. We raise our TP, but we could still be under shooting U.S. investor enthusiasm.
• "Both Angola and Gorgon T1 have recently come back on stream and no doubt folks will want to know that the mods are close to the last required. CVX also sold Asia geothermal for a press reported $3B. Rising commodity prices, asset sales and new project cashflows should help CVX reduce the balance sheet gearing built up in the downcycle."
• CVX price targets range from $145 (Tudor Pickering) to $108 (UBS). Stock has 20 Buy ratings and 9 Hold ratings.