JPMorgan Downgrades Chevron, But This Investor Doesn't See Good Reason To Sell The 'Juggernaut'

JPMorgan Downgrades Chevron, But This Investor Doesn't See Good Reason To Sell The 'Juggernaut'

Chevron Corp CVX was featured as the call of the day Friday on CNBC's "Fast Money Halftime Report."

What Happened: JPMorgan analyst Phil Gresh downgraded Chevron from a Neutral to an Underweight rating and announced a $169 price target.

Gresh acknowledged Chevron is a major global oil player, but he downgraded the stock on valuation concerns following a 50% run in shares year-to-date.

See Also: Benzinga's Top Ratings Upgrades, Downgrades For March 11

Link's Take: Hightower Advisors' Stephanie Link has owned Chevron shares through the run, but she doesn't see a good reason to take profits here.

"It's a juggernaut," Link said Friday. "It's a powerhouse."

She acknowledged the stock has run significantly in 2022, but it still pays a 3.3% dividend.

"It's a juggernaut because they have steady production, they're lowering their CapEx and as a result they have huge free cash flow," Link said.

Chevron is putting said cash to work by ramping up its share repurchase program and increasing its dividend, she explained.

"I like it, I'm going to hold onto it. I might shed the other names, but this one I'm going to keep."

CVX Price Action: Chevron has traded between $92.86 and $174.76 over a 52-week period.

The stock was up 0.73% at $172.02 at time of publication.

Photo: Scott 97006 from Flickr.

Posted In: CNBCPhil GreshStephanie LinkLong IdeasDowngradesPrice TargetAnalyst RatingsMediaTrading Ideas