HSBC downgraded Chevron (NYSE:CVX) from Buy to Hold.
The bank cited the stock's 16% year-to-date price increase, which has stretched the company's valuation and offers limited upside potential.
Despite the downgrade, HSBC raised its price target to $180.00 from $169.00. The bank maintains a positive view of Chevron's cash flow growth and financial discipline.
The primary driver for the rating change was the recent rally, influenced by hopes surrounding Venezuela and higher oil prices. HSBC also noted that Chevron's estimated 2026 distribution yield of 7.2% now trails some European competitors.
This analysis follows Chevron’s fourth-quarter 2025 earnings report. The company beat analyst expectations on EPS but missed on revenue.