UPDATE: Canaccord Genuity Initiates Chevron Corporation at Buy on Balance Sheet and Cash Flow Strength

Canaccord Genuity initiated coverage on Chevron Corporation

with a Buy rating and a $136.00 price target. Canaccord Genuity commented, "In Chevron's case, not only do we see the best growth in volumes and cash flows in the peer group but importantly, relatively little near-term stress on its balance sheet. This comes from a combination of 1) easily the highest cash flow/bbl in the peer group, giving it much greater flexibility to go through the current high capex phase and 2) the strongest balance sheet, with nearly $10bn of net cash at YE12. We think Chevron should be able to sustain buybacks at $5bn pa in 2013-14, giving a distribution yield (dividends + buybacks) of ~5.5% and still having broadly no net debt." Chevron Corporation closed at $114.99 on Thursday.