UBS Reaffirms its Buy Rating on Chevron Corporation (CVX) with a Price Target of $197

Chevron Corporation (NYSE:CVX) is one of the 11 Most Profitable Blue Chip Stocks to Buy Right Now.

Photo by Luis Ramirez on Unsplash

On September 26, 2025, after revealing the anticipated accounting effects of its $55 billion acquisition of Hess, UBS reaffirmed its Buy rating on Chevron Corporation (NYSE:CVX) with a price target of $197. Although Hess’s partial-quarter contribution may marginally boost adjusted earnings, the oil major expects transaction and severance costs to have a negative impact on third-quarter GAAP earnings.

Following a court struggle with ExxonMobil, the transaction was concluded in July. It raises capital spending by $1 billion to $1.25 billion in Q3 and adds 450,000 to 500,000 barrels of oil equivalent per day. Chevron Corporation (NYSE:CVX) expects long-term synergies from Hess assets despite these short-term costs, and during its Analyst Day on November 12, it will give comprehensive updates on upstream growth, return on capital, and pro-forma expenditures. The deal highlights Chevron Corporation (NYSE:CVX)’s strategic positioning in the face of ongoing global operating challenges and consolidation in the oil sector.

Through its subsidiaries, Chevron Corporation (NYSE:CVX) produces and refines oil, gas, and petrochemicals as part of its global integrated energy and chemicals operations through its Upstream and Downstream sectors. It is one of Most Profitable Stocks.

While we acknowledge the potential of CVX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Stocks That Will Benefit From AI and 14 Best IT Stocks to Buy for the Long Term.

Disclosure: None.