Chevron Corp.'s stock
tacked on 0.6% in premarket
trade Wednesday, after the oil company was upgraded at Societe Generale,
which cited significant upside potential in the share price as a lot of
the bad news has already been priced in. Analyst John Herrlin raised
his rating to buy from hold, while maintaining his 12-month stock price
target of $115, which is 15% above Tuesday's closing price. The stock
has slumped 11% year to date through Tuesday, compared with a 2.3%
decline in the SPDR Energy Select Sector ETF
and a 1.8% gain in the S&P
500. The stock closed Monday at the lowest level since June 25, 2012.
Issues that have weighed on Chevron's stock included weaker oil pricing,
cost overrun issues in Australia and production delays resulting from
platform malfunctions, Herrlin said. But with those issues in the past,
Herrlin said the stock's total return potential of about 20% on the
stock, including a 4.3% dividend yield, makes it attractive.