Mizuho raises Hess Corp stock target to $205 from $200 By Investing.com

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On Wednesday, Mizuho Securities updated its valuation model for Hess Corp . (NYSE:), resulting in a slight increase in the price target for the energy company’s shares. The new target has been set at $205.00, up from the previous $200.00, while the firm has chosen to maintain a Neutral rating on the stock.

The adjustment comes after the analyst’s review of Hess Corp.’s year-end 2023 reserves, which led to a modest increase in the stand-alone net asset value (NAV) to $172 per share, a $2.00 rise from the earlier estimate of $170 per share. This revised NAV is part of the rationale behind the new price target.

The price target is also influenced by an updated NAV-based price target for Chevron Corp. (NYSE:NYSE:), which is set at $200.00, and the exchange ratio of 1.025. The finalization of Hess’s deal is contingent on the outcome of an ongoing arbitration process between Chevron and other partners in Guyana, including Exxon Mobil Corp. (NYSE:NYSE:).

The firm anticipates that while the deal is expected to proceed, it may face delays beyond the original mid-year 2024 completion timeline. The analyst’s base case now assumes a closing date of September 30, 2024, for the transaction.

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