-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target of $211, up $5, reflects EV/EBITDA and DCF analyses. We apply an 8.0x multiple of EV to projected 2027 EBITDA, above CVX's historical forward average, but below peak levels, yielding $186 per share. Our DCF model, using FCF growth of 7.1% per year for 10 years and 2.5% thereafter, discounted at 6.0%, yields $237 per share. We cut our 2026 EPS estimate by $0.14 to $11.16 and our 2027 estimate by $0.39 to $8.93. CVX suffered some volume degradation in international upstream in Q1, as the war in the Middle East has disrupted the normal course of business. We note, however, that this degradation was less acute for CVX than for its chief rival, Exxon Mobil (XOM 153 ***). CVX maintained a conservative approach to spending in Q1 despite the ramp in crude prices, as we estimate that its reinvestment rate was just 44% in Q1, about on par with that of XOM at 43%. Shares yield 3.7%, and we see a healthy degree of buyback activity as well.