The bank sees the energy giant as the preferred way to benefit from a potential crude price surge if Middle East tensions persist.
- Bank of America maintained a ‘Buy’ rating on Chevron and said it offers better exposure to higher oil prices compared with Exxon Mobil due to its business mix.
- Chevron shares have gained around 15% year-to-date as the Iran war pushed crude prices higher.
- Wall Street remains bullish on Chevron, with 19 of the 24 analysts covering the stock having a ‘Buy’ or ‘Strong Buy’ rating, according to Koyfin.
Chevron Corp. (CVX) could benefit if tensions between Iran and the U.S. remain elevated and the Strait of Hormuz closes again, according to Bank of America.
The bank has a ‘Buy’ rating on the oil and gas company and a $210 price target on the shares, implying around 19% upside from Wednesday’s close.
CVX stock was down nearly 1% at the time of writing on Thursday.
Bank Of America Prefers CVX Over XOM
“CVX is our preferred way to play [increased oil prices] … integrateds are pricing in <$70/bbl LT Brent, which we see as a particularly attractive entry point,” Bank Of America (BofA) said in a note to clients, according to a report in CNBC.
“We prefer CVX to XOM given its Venezuela presence, lack of Middle East exposure, and higher earnings torque to the shifts upward in prices in 2026/27,” the firm added.
The Iran war has pushed crude prices higher amid concerns over supply disruptions, with control of the Strait of Hormuz at the center of the conflict. The waterway handles around 20% of global oil shipments, making any disruption a major risk for energy markets.
However, oil futures dipped slightly on Thursday. At the time of writing, International Brent crude futures (Co1) were down 2.56% at $76 per barrel, while West Texas Intermediate futures (CL1) fell 2.3% to $71.83 a barrel.
BofA Expects Oil Prices To Remain Elevated
Despite Thursday’s slight dip, Bank of America expects oil prices to remain elevated as the U.S. continues its campaign against Iran and brushes off efforts to reach a settlement.
“Medium term restocking demand should support a $70/bbl level, assuming that the strait reopening is not essentially flawless from here, which seems like a safe assumption (at least as of today),” the BofA analyst wrote.
The analyst added that while a large amount of crude has been announced as potentially coming out of the Middle East in the near future, the delivery of those shipments depends largely on Iran tensions easing, “which looks less likely.”
CVX Stock: What Stocktwits Retail Sentiment Says
On Stocktwits, retail sentiment for CVX was ‘bullish,’ unchanged over the past 24 hours, while message volume was ‘normal’ at the time of writing.
Bank of America’s rating aligns with broader Wall Street sentiment. According to Koyfin data, 19 of the 24 analysts covering Chevron have a ‘Buy’ or ‘Strong Buy’ rating on the stock. The 12-month average price target stands at $216.48, implying potential upside of about 23% from the last close.
The CVX stock has gained around 15.5% year to date.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
