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Chevron (NYSE:CVX) stock is getting a boost on Wednesday after the oil company’s shares were upgraded by Mizuho analyst Nitin Kumar.
That upgrade has Kumar bumping shares of CVX stock up from a “neutral” rating to a “buy” rating today. For comparison, the analysts’ consensus rating for CVX stock is “moderate buy” based on 18 opinions.
In addition to this, the Mizuho analyst also increased their price target for CVX stock from $205 per share to $209 per share. That represents a potential upside of 31% over the next year. To put that in perspective, the analysts’ consensus price prediction for CVX shares is sitting at $190.39 each.
Why The Bull Rating For CVX Stock?
Here’s what Kumar said about Chevron in a note to clients obtained by CNBC.
“Although oil mix has trended below the long term 50% indicated by CEO Mike Wirth on the earnings call, we expect it to increase as new well productivity improves. This all provides substantial confidence in CVX’s ability to meet its upstream growth outlook.”
Following this upgrade, shares of CVX stock have increased 1.3% as of Wednesday morning. That comes with some 809,000 shares changing hands. That’s still well below the energy company’s daily average trading volume of around 8 million shares.
Of course, there’s more stock market news worth checking out today besides the CVX stock upgrade!
Luckily, we have all of the biggest stock market stories that traders need to know about on Wednesday! That includes Tower Semiconductor (NASDAQ:TSEM) stock falling on a failed merger deal, another AMC Entertainment (NYSE:AMC) lawsuit over its planned stock conversion, as well as new approval sending Coinbase (NASDAQ:COIN) stock higher today. All of that news is ready to go at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.