Chevron (NYSE:CVX) stock is a hot topic among traders on Tuesday after the oil company got a new price prediction.
HSBC analyst Kim Fustier is behind this news with a new price target of $189 per share for CVX stock. This has the analyst expecting the price of CVX shares to increase roughly 24% over the next year. For the record, the analysts’ consensus price target is $194.12 per share.
With that price target comes an upgrade for CVX stock. This has Fustier bumping shares up from a “hold” rating to a “buy” rating. For comparison, the analysts’ consensus rating for CVX is “moderate buy” based on 19 opinions.
What’s Behind the Bullish CVX Stock Rating
The HSBC analyst believes that the recent devaluation of CVX stock makes for a strong buying opportunity. Shares of CVX are down 10% over the past month while U.S. crude prices are down 6%.
However, Fustier believes that oil prices can recover throughout 2023. If that happens, the analyst expects the price of CVX stock will rally alongside oil prices. She also points to high dividend yields from CVX that are a benefit of holding the company’s shares.
CVX stock is up 2.9% as of Tuesday morning. This comes as some 1 million shares change hands. The company’s daily average trading volume is closer to about 7.7 million shares.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.