Chevron rated buy with higher price target on strong Q1 growth and rising oil prices

Chevron has been reaffirmed as a buy with an increased price target due to higher oil prices and strong production growth in Q1. The company maintains its 2026 guidance of 7–10% production growth, $18–19 billion in annual organic capital expenditure, and $3–4 billion in cost reductions by year-end. Earnings per share are expected to grow robustly, with normalized EPS projected between $12 and $14 and a free cash flow yield of 5.3%. Key risks include potential oil price drops from Middle East peace talks, Venezuela exposure, and refining competition, but technical support remains strong at $180 per share.