Bank of America Merrill Lynch Reiterates Neutral Rating, $125 PT on Chevron Corporation

In a report published Friday, Bank of America Merrill Lynch reiterated its Neutral rating and $125.00 price target on Chevron Corporation CVX. BofA Merrill Lynch noted, “CVX's interim points to earnings that are ‘notably higher', albeit this will include gains from asset swaps expected to total $1.4bn (~$0.72/sh). Excluding asset sales, our 4Q12 estimate moves down slightly, from $3.13 to $3.06. Sequentially, our estimate suggests EPS up sharply from $2.52 in 3Q12 largely on the recovery of higher margin production in the US GoM and Kazakhstan/UK as output returned from the effects of Hurricane Isaac and intl maintenance. Both issues impacted CVX in 3Q12 – and we expect the rebound to similarly benefit XOM.” Chevron Corporation closed on Thursday at $110.47.