Royal Dutch Shell Stock – $113 Target By Goldman Sachs
- The shares of Chevron Corporation (NYSE: CVX) have received a price target of $113 by Goldman Sachs. These are the details.
Chevron has often been associated with investors who were interested in buying into oil and gas industry with low risks. But even though Chevron has a 5% dividend yield, the company’s rivals have been improving and trading at more discounted valuations, according to Mehta. So Mehta recommends that investors look at other companies in the industry like Exxon Mobil, BP, ConocoPhillips, Total, and Royal Dutch Shell.
“To be clear, we do not view the Chevron valuation as expensive on an absolute basis or versus history,” wrote Mehta in a research note via Barron’s. “We simply see better total return elsewhere among global oils after multiple years of strong performance.”
Mehta pointed out that Chevron is more expensive based on a price-to-earnings ratio and free-cash-flow-yield basis. And since Mehta believes oil prices are expected to remain relatively high, he believes that investors should look into slightly riskier companies.
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