The firm also increased its price target to $130 from $113 on shares of the San Ramon, CA-based energy company, according to TheFly.
Morgan Stanley analysts believe Chevron has the largest free cash flow inflection from 2017 to 2019 from project start-ups.
Chevron has the best short-cycle opportunity globally, specifically in the Permian, Morgan Stanley noted.
The company's free cash flow and project opportunities should drive continued dividend growth, the firm added, TheFly reports.
Separately, 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 articles's author.
The team rates Chevron as a Hold with a ratings score of C. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: CVXCVX data by YCharts