CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price of $162, cut $18, reflects a 5.7x multiple of enterprise value to projected 2024 EBITDA, modestly below CVX’s historical forward average. We cut our 2023 EPS estimate by $0.26 to $13.01 and 2024’s by $0.48 to $14.12. Q3 adjusted EPS of $3.05 vs. $5.56, missed the consensus view by $0.60. On a per-barrel of oil equivalent basis, we estimate CVX’s adjusted earnings in the third quarter were about 12% weaker than those of chief rival Exxon Mobil (XOM 105 ****), with international upstream as the main culprit. CVX’s pending acquisition of Hess Corporation (HES 145 ***) should enable some acceleration in international upstream production, as its stake in blocks offshore Guyana (where XOM is the chief operator) should help in the 2024-2025 time frame. CVX also noted some cost creep arising in the TCO project in Kazakhstan, which weighs on free cash flows to a degree. Still, CVX has low debt levels, and shares yield 4.1%.