Story updated at 10 a.m. to reflect market activity.
Chevron was falling -0.5% to $127.31 in morning trading.
The firm raised its price target for the company to $140 from $135. Morgan Stanley analysts Evan Calio, Benny Wong, and Manav Gupta expect Chevron's production to be flat in 2015.
"We believe CVX's longer-term relative growth profile and free cash flow (FCF) inflection remains on-track, yet we expect 2015 will be a relatively flat year for production and we see more balanced 12-month risk reward," the analysts wrote. "We also see production risk to 2H14 and higher capex risk in 2015 as the last phase of spending kicks in some of CVX's major growth projects. We still believe relative performance on a 3-year basis, yet weighted towards 2016 and 2017. We still prefer most among Super-Majors."
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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 largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."