On Monday, Susquehanna updated its stance on Hess Corp . (NYSE: NYSE:HES), increasing the price target to $156 from $152, while maintaining a Neutral rating on the stock. The firm's analyst cited Hess's fourth-quarter production, which surpassed expectations, and its adjusted earnings per share (EPS) that beat forecasts.
Hess Corp. reported a fourth-quarter production of 418 thousand barrels of oil equivalent per day (Mboe/d), which was 2% higher than Susquehanna's forecast. In addition, the company's adjusted EPS of $1.63 exceeded the analyst's estimate by $0.19.
In light of these results, Susquehanna has revised its production and adjusted EPS forecasts for 2024 and 2025 to 468/491 Mboe/d and $9.11/$10.35, respectively.
The company has also provided its capital expenditure (capex) guidance for 2024, which is set at $4.2 billion, marking a year-over-year increase of 1%. The upward revision in the price target to $156 by Susquehanna reflects this guidance, aligning with the conversion ratio of Chevron Corp. (NYSE:CVX) shares to Hess Corp. shares.
The new price target represents Susquehanna's valuation based on the anticipated performance and financial guidance provided by Hess. The Neutral rating indicates that the firm does not see significant upside or downside potential from the current stock price level, suggesting that the shares are fairly valued at the time of the report.
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