BUZZ-Street View: Chevron's Hess deal poised to accelerate growth prospects
Chevron's recent $55 billion acquisition of Hess has led to record Q3 results, surpassing estimates. Analysts have a median price target of $173.5, with Morningstar noting the deal enhances Chevron's long-term growth and competitiveness. Evercore ISI highlights Chevron's diverse portfolio, while BofA Global Research anticipates strong shareholder returns from the Hess integration. However, TD Cowen expresses concerns over cash flow contributors, which may hinder free cash flow prospects.
Chevron (CVX.N) beat Q3 results estimates on Friday due to record oil and gas production, boosted by its $55 billion acquisition of Hess, and stronger refining margins
Median PT of 28 brokerages covering the stock is $173.5 -data compiled by LSEG
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Morningstar (fair value: $171) says the addition of Hess has addressed concerns over co’s long-term growth and makes it “more competitive” with Exxon
Evercore ISI (“outperform,” PT: $180) notes Chevron’s portfolio is broader and more diverse than it has been in over a decade; adds its oil-heavy focus could stand out as market concerns ease and attention shifts to shrinking supply and steady demand in 2026 and beyond
BofA Global Research (“buy,” PO: $183) expects the ongoing Hess integration and base business growth to provide a solid foundation for boosting shareholder returns going forward
TD Cowen (“hold,” PT: $160) says two of Chevron’s largest cash flow contributors -Permian and TCO- will continue to be discounted by the market due to execution concerns, hindering its FCF prospects
