Shares of Chevron were falling 0.3% to $119.61 in morning trading.
The analyst firm also raised its EPS estimates for the oil and gas company through 2015. Credit Suisse analysts expect Chevron to report earnings of $7.96 a share for 2014, up from previous estimates of $9.42 a share. The firm raised its EPS estimates for 2015 to $9.19 a share from $8.96 a share.
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"We remain very comfortable with our analysis, which suggests CVX has a good base production; new projects should have strong cash margins, the downstream will add cashflows and capital intensity per bbl will fall once Gorgon and Wheatstone are delivered," Credit Suisse analysts wrote. "With a lower oil price and heavy current spend, it is natural there are skeptics, particularly when XOM (who are further along in their improved cash cycle) are reaping the benefits."
Separately, TheStreet Ratings team rates CHEVRON CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHEVRON CORP (CVX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CVX's revenue growth has slightly outpaced the industry average of 1.9%. Since the same quarter one year prior, revenues slightly increased by 0.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CVX's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.99 is somewhat weak and could be cause for future problems.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Oil, Gas & Consumable Fuels industry average, but is greater than that of the S&P 500. The net income increased by 5.6% when compared to the same quarter one year prior, going from $5,365.00 million to $5,665.00 million.
- CHEVRON CORP has improved earnings per share by 7.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CHEVRON CORP reported lower earnings of $11.09 versus $13.32 in the prior year. For the next year, the market is expecting a contraction of 8.5% in earnings ($10.15 versus $11.09).
- You can view the full analysis from the report here: CVX Ratings Report