Jim Cramer Predicts Chevron Will Be a Winner Amidst Dividend Growth and Acquisition of Hess.

Jim Cramer predicts Chevron will be a winner due to its increasing dividends and preparation to close its acquisition of Hess. Chevron is a multinational energy company that explores, produces, and transports oil and natural gas, and develops renewable energy solutions. Cramer acknowledges the potential of CVX as an investment, but believes certain AI stocks offer greater upside potential and carry less downside risk.

Scotiabank has revised its outlook on Chevron (CVX, Financial), increasing its price target from $143 to $160. This adjustment aligns with the financial institution's Sector Perform rating and is part of a broader revision of price targets for U.S. Integrated Oil, Refining, and Large Cap Exploration and Production companies within its coverage. Investors are advised to consider these changes while assessing their portfolios.

Analysts have forecasted an average target price of $162.11 for Chevron Corp (CVX, Financial), with a high estimate of $186.00 and a low estimate of $124.00. This average target implies an upside of 5.15% from the current price of $154.17. The consensus recommendation from 24 brokerage firms is currently 2.4, indicating an "Outperform" status.

GuruFocus estimates Chevron's GF Value at $153.56 for the next year, suggesting a downside of 0.4% from the current price of $154.17. The GF Value is calculated based on historical multiples, past business growth, and future performance estimates.

In the first quarter of 2025, Chevron returned $6.9 billion to shareholders through dividends and buybacks. The company maintains a strong balance sheet with a net debt ratio of 14%, well below its target range of 20% to 25%.

Jim Cramer, a prominent financial analyst, has acknowledged Chevron's potential as an investment due to its increasing dividends and preparation to close its acquisition of Hess. However, Cramer believes certain AI stocks, such as Uber and CoreWeave, offer greater upside potential and carry less downside risk.

Uber Technologies (UBER, Financial) is expected to achieve a market value of $340 billion by late 2028, with a stock price increase of 69% to $163 per share. CoreWeave (CRWV, Financial), a leader in AI cloud services, is projected to reach $340 billion in market value by late 2028, with a stock price increase of 440% to $702 per share.

These predictions highlight the potential growth opportunities in the AI sector, which could outperform traditional energy companies like Chevron. Investors should carefully consider these forecasts and assess their risk tolerance before making investment decisions.

References:
[1] https://www.ainvest.com/news/chevron-price-target-raised-160-scotiabank-2507/
[2] https://www.theglobeandmail.com/investing/markets/stocks/PLTR-Q/pressreleases/33364566/prediction-2-ai-stocks-will-be-worth-more-than-palantir-technologies-by-late-2028/