S&P Capital IQ Reiterates its STRONG BUY Rating on Chevron, Target Price Raised

October 29 00:00 2011

New York, October 29 (RainbowNewsLine.com) – Analyst Michael Kay of S&P Capital IQ reiterates his STRONG BUY rating on the shares of Chevron Corporation (NYSE: CVX), while reducing his estimates for the company. The target price has been raised from $128 to $132.

Analyst Michael Kay, in a research note published yesterday  mentions that the company has reported its Q3 EPS ahead of the estimates, driven by asset sales, higher gas prices and refining. Chevron’s downstream grew 90% on international strength, high usage, asset sales and Foreign Exchange, the analyst says. Gas prices from the company’s E&P were high, the prices were inline for US refining while production fell 5% on maintenance and declines, the analyst adds. S&P Capital IQ expects Q4 volume to rise on restored Thailand pipeline and projects. The EPS estimate for 2012 has been reduced from $15.70 to $13.65.