Overview
- Morgan Stanley reduced its Chevron price target from $214 to $210 on June 29, citing a sharp fall in West Texas Intermediate after the US and Iran signed a memorandum on June 14.
- The broker left an Overweight recommendation in place, signaling that the target change reflects updated oil assumptions rather than a shift in Chevron’s long‑term outlook.
- Chevron continues to signal strong dividend support with 39 consecutive years of increases and a yield near 4%, and the company says its business can cover payouts at crude below $50 per barrel.
- Operational moves are reinforcing cash flow expectations, including integration of the Hess acquisition, Permian production growth, and a $3–$4 billion structural cost‑reduction program on track for end‑2026 delivery.
- Chevron also signed a long‑term deal to supply natural‑gas power to a proposed Microsoft data center in West Texas, a commercial step that could steady margins and diversify revenue from power offtake agreements.