Cowen downgrades Chevron with Hess deal not helping cash until 2027

TD Cowen downgraded Chevron (CVX) to Market Perform from Outperform with a price target of $150, down from $170. The company’s largest growth drivers, the Permian and Tengizchevroil, could continue to be discounted by the market due to execution concerns, while the Hess Corp. (HES) deal may not result in annual net cash inflows until 2027, the analyst tells investors in a research note. As a result, Chevron needs a higher oil price to cover its dividend and may not sustain its buyback pace beyond 2025, while oil risk shifts to “downside bias,” says the firm.