At a Reuters conference on Thursday, Chevron’s (CVX) CFO Pierre Breber said that the company does not plan to scale down its oil and gas business for wind and solar energy.
At the conference, Breber said that the company would invest about $3 billion over the next seven years to reduce harmful emissions from its operations.
Of the planned investment, almost $2 billion is targeted to be spent on lowering carbon emissions in its own operations, whereas $750 million will be allocated towards renewable fuels such as renewable natural gas. (See Chevron stock chart on TipRanks)
Like Chevron, most of the major players in the oil and gas industry, including ExxonMobil (XOM), are facing pressure from their investors to reduce carbon emissions. Notably, in May, about 61% of Chevron’s shareholders backed a proposal to reduce emissions.
Last month, Mizuho Securities analyst Daniel Boyd reiterated a Buy rating on the stock but raised the price target to $127 from $119. The new price target implies 18.5% upside potential from current levels.
Boyd believes that robust demand and the prospect of global demand reaching pre-pandemic levels by Q4 will be a tailwind for the company.
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 6 Buys and 3 Holds. The average Chevron analyst price target of $123 implies 14.8% upside potential from current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Chevron, with 1.3% of investors increasing their exposure to CVX stock over the past 30 days.
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