Chevron’s Hess acquisition is ‘right deal for the long term’, says RBC Capital

RBC Capital analyst Biraj Borkhataria keeps an Outperform rating and $180 price target on Chevron (CVX) after its announced acquisition of Hess (HES). This is the “right deal for the longer term” for Chevron as it addresses two key concerns, portfolio concentration and longer term growth optionality, the analyst tells investors in a research note. The deal looks to be dilutive to EPS, free cash flow per share and ROCE in the near term, but looking towards the end of the decade, the metrics should improve, the firm added.