UBS sees upside to $125 in Chevron: a conservative price target?

Shares of Chevron Corp (NYSE: CVX) have climbed over 20% since late September, and UBS says there’s still a little more juice left in the stock.

Jon Rigby upgraded CVX to ‘buy’

In a note this morning, UBS analyst Jon Rigby upgraded CVX to “buy” with a price target of $125 that represents an about 8.0% upside from here. Previously, he had a PT of $110 on the stock.

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The bullish call is based on the rising oil prices that, as per Rigby, are not factored into the stock price already. He is also convinced that oil prices will remain lofty and will continue to fuel the stock in the coming months.

Pete Najarian is even more bullish on Chevron

On CNBC’s “Halftime Report”, optionMONSTER co-founder Pete Najarian, a Chevron shareholder, agreed with the bullish call but said the price target was rather modest. He expects the stock to hit $135 a share or more.

Chevron’s dividend is unreal. Their balance sheet, it’s fantastic. Their cash flows, absolutely extraordinary. Michael Wirth does an unbelievable job and always keeps his focus on the direction they’re going to. I like this company; I love the way they run it.

Lebenthal expects oil prices to remain high

During the same interview, Cerity Partners’ Jim Lebenthal also reiterated that oil prices were likely to keep up next year. He said:

There’ll be a supply-demand mismatch in favour of higher oil prices next year. It won’t be solved until either OPEC or domestic shale producers start pumping more, neither of which seems likely anytime soon, because these companies want to keep their share price high and they know if they start spending too much, share price goes down.

Other notable Chevron bulls include Gilman Hill’s Jenny Harrington and Hightower’s Stephanie Link, who prefers it over its larger rival Exxon.