UBS Lowers Target Price, Estimates on Chevron (CVX) (Update)

Update (9:40 a.m.): Updated with Monday market open information.

NEW YORK (TheStreet) -- UBS lowered its target price on Chevron  (CVX) to $120 and set a "neutral" rating. The firm also lowered its estimates on the energy company through 2015 based on disappointing production in 2014 that put pressure on the long-term volume target.

The stock was rising 0.27% to $111.93 shortly after the market opened on Monday.

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Separately, TheStreet Ratings team rates CHEVRON CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate CHEVRON CORP (CVX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CVX's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CVX's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $10,316.00 million or 33.45% when compared to the same quarter last year. In addition, CHEVRON CORP has also vastly surpassed the industry average cash flow growth rate of -44.35%.
  • The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 5.8% when compared to the same quarter one year ago, dropping from $5,253.00 million to $4,950.00 million.
  • You can view the full analysis from the report here: CVX Ratings Report

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