UBS Reaffirms its Buy Rating on Chevron Corporation (CVX) with a Price Target of $197

Core Insights - Chevron Corporation (NYSE:CVX) is recognized as one of the most profitable blue-chip stocks to consider for investment [1] - UBS has reaffirmed its Buy rating on Chevron with a price target of $197 following the announcement of its $55 billion acquisition of Hess [2] - The acquisition is expected to have short-term negative impacts on GAAP earnings due to transaction and severance costs, despite potential long-term synergies [2][3] Financial Impact - The acquisition of Hess is projected to increase Chevron's capital spending by $1 billion to $1.25 billion in Q3 [3] - The deal is anticipated to add 450,000 to 500,000 barrels of oil equivalent per day to Chevron's production [3] Strategic Positioning - Chevron aims to leverage long-term synergies from the Hess assets, positioning itself strategically amid global operational challenges and industry consolidation [3] - A comprehensive update on upstream growth, return on capital, and pro-forma expenditures is expected during Chevron's Analyst Day on November 12 [3] Company Overview - Chevron operates through its subsidiaries in the production and refining of oil, gas, and petrochemicals, functioning within its Upstream and Downstream sectors [4]