Barclays Reviews Chevron's Earnings

In a report published Monday, analysts at Barclays maintained their Equal-Weight rating on

, while raising the price target from $110 to $115. The analysts believe the company's 1Q15 performance would have a neutral impact on the near-term performance of Chevron's shares. The company has reported strong Q1 results, with higher than anticipated production. However, this positive news is expected to be largely offset by the weak cash flow and high cash burn rate during the quarter. Apart from the above expectations production levels, Chevron's strong downstream performance, in line with its other Americas-integrated peers, helped offset the considerable drop in upstream realization. "While we agree with the company's decision not to raise the dividend in 2Q, the market may view it negatively," the analysts said, especially given the 6 percent rise in Exxon Mobil Corporation's quarterly dividend. "The news about the potential stoppage in CVX's Neutral Zone operations adds further negative sentiment on the stock," the analysts added.