Bernstein last night upgraded Hess Corp. (HES) to Outperform from Market Perform with a price target of $172, up from $166. The analyst worries about the direction of oil price in the coming quarters. The firm sees balance requiring a “strong and nimble OPEC hand,” but worries about their short-term track record. It reduced its oil price outlook for the next 18 months by a “modest” $5 to $75 per barrel. The Chevron merger math of Hess shareholders receiving 1.025 shares of Chevron, a successful close yields 16% upside in Hess, the analyst tells investors in a research note. Furthermore, an inability to close the merger would not “doom” Hess shares, contends the firm.
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Read More on HES:
- Hess Corp. price target lowered to $157 from $165 at Scotiabank
- FTC delays decision on Hess takeover by Chevron, Bloomberg reports
- FTC delays Chevron-Hess decision after Exxon arbitration, Bloomberg says
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- Goldman Sachs names John Hess to board