Morgan Stanley Cuts Chevron Price Target but Keeps Overweight Rating
The firm cited a sharp drop in crude after a US–Iran memorandum of understanding, a move that pressures near-term earnings estimates and valuation.
Overview
- Morgan Stanley trimmed its Chevron price target from $214 to $210 while maintaining an Overweight stance, reflecting lower oil-price forecasts.
- The bank said U.S. and Iran diplomatic progress reduced acute supply fears and helped push crude prices down roughly from their spring peak.
- The revised $210 target implies roughly 27% upside from current share levels under Morgan Stanley’s updated estimates.
- Investors and fund letters, including one from Meridian Hedged Equity Fund, highlight Chevron’s capital discipline, Permian efficiency and Hess integration as supports for steady free cash flow.
- Chevron’s long dividend record and yield provide income support for shareholders because the company can reportedly cover payouts at oil prices below $50 per barrel.