Energy giant Chevron Corporation (CVX) recently announced that it has set a target to achieve net-zero carbon emissions by 2050. To this end, the company has adopted a 2050 net-zero aspiration for equity upstream Scope 1 and 2 emissions.
Following the news, shares of the company declined marginally to close at $107.05 on Monday.
The company’s new Portfolio Carbon Intensity (PCI) target is in tune with its strategy to allow the smooth running of its traditional businesses, provided they are carbon-efficient, and enable growth in lower-carbon businesses. Further, the PCI target will also help with transparent carbon accounting and company comparison from publicly available data.
Also, to achieve this goal of net-zero emissions, the company expects to partner with multiple stakeholders and progress in technology, policy, regulations and offset markets.
The CEO of Chevron, Michael Wirth, said, “Solutions start with problem solving, which is exactly what the people of Chevron do – and have excelled at for over 140 years. This report offers further insights about our strategy, how we are investing in lower-carbon businesses and why we believe this is an exciting time to be in the energy industry.” (See Chevron stock chart on TipRanks)
Recently, Truist Financial analyst Neal Dingmann reiterated a Buy rating on the stock. The analyst, however, raised the price target to $150 from $145, which implies upside potential of 40% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 8 Buys and 6 Holds. The average Chevron price target of $122.85 implies that the stock has upside potential of 14.7% from current levels.
Chevron scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 43.8% over the past year.
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