Chevron: shares rally after Credit Suisse upgrade

(CercleFinance.com) - Chevron shares rallied on Monday after Credit Suisse upgraded its rating and expectations for the oil company, citing valuation grounds.


The brokerage firm upgraded the stock from "neutral" to "outperform," while keeping a target price of 138 dollars.

"Despite the strong operating/financial execution, recent relative share price underperformance has de-rated its valuation to a much wider than normal discount to both ExxonMobil and its historical averages," it said.

Chevron continues to execute on its superior growth outlook, which should translate into better-than-expected capital efficiencies into 2019, the broker added, seeing upside to 2019-2020 volume forecasts.

Chevron shares are up 4% at 119.3 dollars in early morning trading in New York, largely outperforming the Dow Jones index, which is timidly up 0.3%.

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