UPDATE: Morgan Stanley Reiterates Overweight Rating, Raises PT on Chevron Corporation on Expected Growth

In a report published Wednesday, Morgan Stanley analyst Evan Calio reiterated his Overweight rating on Chevron Corporation CVX, and raised his price target to $130.00. In the report, Calio noted, “CVX will likely increase midstream divestitures availing strong MLP buyer markets. We believe a significant portion of US midstream assets will prove to be non-strategic and monetized in newly formed midstream business segment. As capital spending peaks in 2013-2014, we expect the current cash balances ($10Bn) will be reduced to normal levels; however, we expect CVX will raise its dividend in line with historical averages, outpacing XOM in 2013. We raise PT to $130/sh.” Chevron Corporation closed on Tuesday at $118.25.