Chevron (CVX) delivered stronger-than-expected Q3 results, driving higher free cash flow forecasts, Morgan Stanley said Monday in a report.
Morgan Stanley raised its Q4 free cash flow estimate to $12.1 billion from $11.3 billion while lowering its EPS estimate to $5.14 from $5.42. It raised its 2026 free cash flow forecast 3% to $44.8 billion and its 2027 forecast 3% to $42 billion.
On Friday, Chevron reported Q3 adjusted earnings of $5.28 per diluted share on revenue of $67.8 billion. Analysts polled by FactSet expected EPS of $4.87 on revenue of $61.8 billion.
The earnings beat reflected stronger-than-expected refining performance, while capital spending came in below forecasts, the report said. Morgan Stanley said it expects Chevron’s 2027 capital budget to remain within the company’s long-term spending range.
Chevron continues to offer strong free cash flow generation and above-sector growth potential, with opportunities in Venezuela, Iraq, Libya, Syria and Egypt providing potential upside to the company’s plans, the report said.
Morgan Stanley raised its price target on Chevron stock to $230 from $226 and kept its overweight rating.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
