NEW YORK (TheStreet) -- Shares of Chevron (CVX) - Get Report were climbing in early-afternoon trading on Monday after Goldman Sachs upgraded the stock to "buy" from "neutral" and added shares to its "Conviction List."
The firm anticipates an uptick in volume following a decade of "relatively flat production." This should be driven by liquefied natural gas projects in Australia and Africa, U.S. projects within the Permian, and Kazakhstan's Tengiz field, Goldman said.
Additionally, free cash flow should benefit as new projects accelerate and oil prices improve to $50 to $60 a barrel, the firm noted.
Chevron should see multiple expansion relative to Exxon (XOM), Goldman added. The firm lowered its rating on Exxon stock to "neutral" from "buy" earlier today.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Chevron's strengths such as its solid stock price performance and largely solid financial position with reasonable debt levels by most measures are countered by weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.
You can view the full analysis from the report here: CVX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.