The uncertainty of Hess's (HES.US) arbitration or being priced by the market Citigroup upgrades Chevron (CVX.US) to Buy

Citigroup raised its rating on Chevron (CVX.US) to Buy and added the stock to its Up Catalyst Watch List, saying its performance has lagged that of major peer Exxon (XOM.US) by a wide margin. The valuation discount to Exxon could reach 20% by 2026-2027, the largest gap between the two stocks historically, said Alastair Syme of Citigroup. The valuation gap "should provide investors with a view around the unknown outcome of the 2025 HES arbitration," he added, and said "downside risk looks protected but upside potential is significant."