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Posted On: 03/21/2018 2:09:23 AM
Post# of 144622
$CVX Chevron's (CVX +0.5%) recent pullback has presented a favorable entry point for investors, says J.P. Morgan's Phil Gresh, reiterating his Overweight rating and raising his price target to $135 from $130.
"With the recent pullback in the stock to sub-$115 following a messy Q4, we think the current valuation is a favorable entry point for a company that we expect to have a balanced long-term story around production growth, [free cash flow] generation, and return of capital through at least 2022 with fairly low execution risk," Gresh writes.
CVX's "penalty box" following an underwhelming Q4 is temporary, Gresh believes, as execution this year will be "the key catalyst to renewed confidence in 'growth plus shareholder yield' potential."
"With the recent pullback in the stock to sub-$115 following a messy Q4, we think the current valuation is a favorable entry point for a company that we expect to have a balanced long-term story around production growth, [free cash flow] generation, and return of capital through at least 2022 with fairly low execution risk," Gresh writes.
CVX's "penalty box" following an underwhelming Q4 is temporary, Gresh believes, as execution this year will be "the key catalyst to renewed confidence in 'growth plus shareholder yield' potential."
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