Chevron Could Drop 13% as Oil Slips, Says 24/7 Wall St.

24/7 Wall St. has issued a bearish outlook on Chevron Corporation (NYSE:CVX), predicting a roughly 12.88% downside over the next 12 months. The firm's price target of $152.52 stands well below the current trading price of $175.06. Despite recommending a hold with 90% confidence, analysts highlight that Chevron's valuation at 30x trailing earnings and declining WTI crude prices pose headwinds.

Recommendation Change

• Current Rating: Hold (90% confidence).
• Price Target: $152.52 (12.88% downside from current).
• Current Price: $175.06.

Analyst Rationale

Analysts view Chevron as a high-quality compounder with strong long-term fundamentals. However, the stock's trailing P/E of 30x is considered elevated, and falling WTI crude prices are expected to pressure revenues and earnings, justifying the lower target.

Context

No other analyst recommendations were mentioned in the article. Chevron shares are trading near their 52-week highs, but weakening oil prices could limit further upside.

What We Conclude

24/7 Wall St.'s analysis suggests near-term pressure on Chevron shares due to valuation and oil price headwinds, but the hold rating reflects confidence in the company's long-term compounding ability.