Stock Markets

Chevron stock price target raised by Jefferies on slightly weaker Q1

Published

9 months ago

April 9, 2024

On Monday, Jefferies maintained a positive outlook on Chevron (NYSE:), raising its price target to $190 from the previous $184 while keeping a Buy rating on the stock. The financial firm anticipates a slightly weaker first quarter for Chevron, with cash flow per share (CFPS) expected to be around 4% below the consensus. This forecasted dip is attributed to timing effects, turnarounds, and working capital headwinds.

The analyst from Jefferies projects a weaker quarter for Chevron’s downstream sector despite higher margins, due to heavy turnarounds estimated to cost between $250 million and $350 million. This comes in addition to a reversal of timing effects that had previously boosted downstream earnings by approximately $485 million in the fourth quarter of 2023.

U.S. production is also expected to be weaker, approximately 2% below consensus, impacted by around 20,000 barrels of oil equivalent per day (boepd) of downtime due to winter weather in North America.

This is on top of Chevron’s guidance from the fourth quarter indicating that Permian volumes in the first half of 2024 would be 2-4% below those of the fourth quarter of 2023, with the DJ basin expected to decrease quarter over quarter.

Despite these setbacks, productivity in the Permian/DJ and international sectors remains strong, with the Tengizchevroil (TCO) West Qurna Phase 2 (WPMP) project set to start in the second quarter of 2024, remaining on schedule.

Furthermore, the analyst expects working capital builds in the first quarter due to tax payables, which should reverse later in the year, and minimal affiliate dividends this quarter. However, Chevron’s share repurchases are forecasted to be near the high end of guidance, around $3 billion, with a margin of about 20%.

Regarding the acquisition of Hess Corporation (NYSE:) by Chevron, a shareholder vote is anticipated in the second quarter, which may influence buyback strategies. The deal is also awaiting approval from the Federal Trade Commission (FTC), and while Jefferies expects it to be approved, the closure of the deal could be delayed to the fourth quarter of 2024 due to arbitration over ExxonMobil (NYSE:)’s potential Right of First Refusal (ROFR).

The consolidation of arbitration cases is seen as a positive sign for a potentially quicker resolution.

Lastly, the Jefferies analyst has updated estimates with Henry Hub (HH) and West Texas Intermediate (WTI) prices of $2.39/$3.50 per thousand cubic feet (mcf) and $79.88/$74.49 per barrel for 2024 and 2025, respectively. However, the firm’s normalized pricing forecasts for Henry Hub and WTI at $4/mcf and $65/barrel remain unchanged.

InvestingPro Insights

As Chevron (NYSE:CVX) navigates a potentially weaker first quarter, per Jefferies’ analysis, it’s worth noting some key financial metrics and market insights that could interest investors. Chevron has demonstrated a strong track record with a market capitalization of $300.13 billion and a P/E ratio sitting at a comfortable 14.12, indicating a potentially undervalued stock when looking at the adjusted P/E ratio of the last twelve months as of Q4 2023, which is 13.18.

InvestingPro Tips highlight Chevron’s consistency in rewarding shareholders, having raised its dividend for 36 consecutive years and maintained dividend payments for 54 years. This is complemented by the company’s moderate level of debt and the ability of its cash flows to sufficiently cover interest payments. For those looking to invest, Chevron’s stock trades with low price volatility, providing a relatively stable investment option.

With the company’s next earnings date on April 26, 2024, investors can anticipate updates on performance and strategy. Chevron’s dividend yield stands at a strong 4.03%, and analysts predict profitability for the year, backed by a profitable track record over the last twelve months.

For those seeking in-depth analysis and additional insights, InvestingPro offers more tips and a fair value estimate of $199.79 for Chevron, higher than current analyst targets. Interested investors can use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a total of 9 InvestingPro Tips for Chevron at https://www.investing.com/pro/CVX.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Stock Markets

BioAge Labs (BIOA) Azelaprag Trial Halt Raises Questions About Pre-IPO Disclosures – Hagens Berman

Published

12 hours ago

December 26, 2024

San Francisco, California–(Newsfile Corp. – December 25, 2024) – On December 9, 2024, just months after conducting an initial public offering in September 2024, BioAge Labs, Inc. (NASDAQ: BIOA) made the startling announcement that it was discontinuing a Phase 2 study for its lead product, azelaprag, intended to treat metabolic diseases such as obesity.

Hagens Berman has opened an investigation and urges investors in BioAge who purchased shares in the company’s IPO or on the open market and suffered substantial losses to submit your losses now.

Visit: www.hbsslaw.com/investor-fraud/bioa
Contact the Firm Now: BIOA@hbsslaw.com
844-916-0895

BioAge Labs, Inc. (BIOA) Investigation:

The investigation is focused on the propriety of BioAge’s disclosures about the safety data and other matters related to azelaprag, which the company said in its IPO documents has been “well-tolerated in 265 individuals across eight Phase 1 clinical trials.”

BioAge’s disclosures came into question after the market closed on December 6, 2024, when the company announced the discontinuation of the STRIDES Phase 2 clinical trial evaluating azelaprag in combination with tirzepatide for the treatment of obesity. BioAge said that liver transaminitis was observed in patients receiving azelaprag.

This news drove the price of BioAge shares down almost 80% on December 9, 2024.

“We’re focused on whether BioAge was transparent to investors about the azelaprag safety profile before the December 6 announcement,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in BioAge and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the BioAge investigation, read more »

Whistleblowers: Persons with non-public information regarding BioAge should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email BIOA@hbsslaw.com.

# # #

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235182

Stock Markets

Celsius Holdings (CELH) Hit with Investor Class Action Amid Accusations of Oversold Inventory to Pepsi- Hagens Berman

Published

12 hours ago

December 26, 2024

CELH Investors with Losses Encouraged to Contact the Firm

San Francisco, California–(Newsfile Corp. – December 25, 2024) – Celsius Holdings (NASDAQ:), Inc. (NASDAQ: CELH) and certain of its C-Suite officers are embroiled in a securities class action lawsuit, claiming they misrepresented and concealed crucial information about the company’s financial performance, especially concerning its key customer, PepsiCo (NASDAQ:).

Hagens Berman is investigating the allegations and urges investors in Celsius who purchased shares and suffered substantial losses to submit your losses now.

Class Period: Feb. 29, 2024 – Sept. 4, 2024
Lead Plaintiff Deadline: Jan. 21, 2025
Visit: www.hbsslaw.com/investor-fraud/celh
Contact the Firm Now: CELH@hbsslaw.com
844-916-0895

Celsius Holdings, Inc. (CELH) Securities Class Action (WA:):

The lawsuit alleges that during the Class Period, Celsius failed to disclose to investors several critical points:

Oversold Inventory: Celsius significantly oversold inventory to Pepsi beyond demand, leading to a potential drastic reduction in future purchases.
Declining Sales: As Pepsi depleted its overstock, Celsius’ sales were projected to decline, impacting its financial health and outlook.
Unsustainable Sales Rates: The sales rates to Pepsi were unsustainable and created a misleading impression of the company’s performance.
Misleading Metrics: Consequently, Celsius’ business metrics and financial prospects were overstated

The situation came to light on May 28, 2024, when Celsius’ stock price plummeted nearly 13% following reports from Nielsen indicating slowed sales growth. Analysts highlighted the possibility of significantly reduced sales as Pepsi cut back its inventory.

The stock took another hit on September 4, 2024, dropping over 11% after a company presentation revealed a shortfall of $100 million to $120 million in Pepsi orders compared to the previous year. It was also disclosed that Pepsi had held several million excess cases over the last 18 months.

These revelations have led shareholder rights firm Hagens Berman to investigate the allegations.

“We’re investigating whether Celsius deliberately painted an overly optimistic picture of its relationship with Pepsi, misleading investors about the true state of its financial health and sales sustainability,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Celsius and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the Celsius case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Celsius Holdings should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CELH@hbsslaw.com.

# # #

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235180

Stock Markets

Suriname fugitive ex-President Desi Bouterse dead at 79

Published

12 hours ago

December 26, 2024

By Ank Kuipers

PARAMARIBO (Reuters) -Suriname’s fugitive former President Desi Bouterse has died aged 79, the country’s government said on Wednesday, almost a year after he fled authorities to avoid jail following his conviction over the murder of 15 political activists in 1982.

“The government has been informed through the family and its own investigations of the passing of Mr. D. Bouterse, ex-President of the Republic of Suriname,” Foreign Minister Albert Ramdin told Reuters.

The former leader died on Tuesday, the government said, without confirming where, or even in which country. Last week Surinamese authorities raided his home – where supporters gathered to pay their respects on Wednesday morning – but did not find him.

Surinamese President Chan Santokhi, who investigated the case as a police commissioner and later as justice minister, expressed condolences to Bouterse’s family and urged calm in a statement.

“In the spirit of the holiday season and year-end, the president calls on all to remain dignified and calm, maintain peace and order and engage in prayer in the spirit of these special days,” the statement said.

Bouterse dominated politics in the tiny South American country for decades, leading a coup in 1980 and finally leaving office in 2020.

In 2019 he and six others were convicted for their role in the 1982 murders of 15 leading government critics – including lawyers, journalists, union leaders, soldiers and university professors – for which Bouterse received a 20-year prison sentence.

Bouterse had claimed the murdered men were connected to a planned invasion of the former Dutch colony.

Following years of legal back and forth, Bouterse was ordered to report to prison in January but he did not show up on the appointed date.

Though Bouterse avoided prison by going on the run, Reed Brody, a U.S. war crimes prosecutor who monitored the case for the International Commission of Jurists, said justice had caught up with the convicted former president before he died.