4 big analyst picks: Chevron no longer a sell, says JPMorgan

By Davit Kirakosyan

Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Chevron, Xylem, and Fluent, and a buy initiation at Five9.

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Chevron upgraded to Neutral at JPMorgan

JPMorgan upgraded Chevron (NYSE:CVX) to Neutral from Underweight and raised its price target to $170.00 from $161.00.

According to the firm, Chevron’s valuation fully accounts for the company’s LSD production growth potential led by high-margin assets (Permian, Tengiz) and commitment to a long-term return of capital plan that should hold through the cycle.

After a period of underperforming, the firm believes that Chevron is not excessively expensive compared to its peer group, especially ExxonMobil (NYSE:XOM), its closest peer.

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Five9 initiated at Buy

Mizuho Securities initiated coverage on Five9 (NASDAQ:FIVN) with a Buy rating and a price target of $100.00, noting that the company should benefit from the migration to the cloud in contact centers, and the automation of customer interactions with Generative AI. This should enable the company to gain share and incremental revenue opportunity.

According to the firm, investors underestimate Five9's long-term growth potential. The company has untapped opportunities that can drive revenue growth at a rate of approximately 25%, including upmarket penetration, international expansion, and ARPU uplift from conversational AI.

2 more upgrades

Baird upgraded Xylem (NYSE:XYL) to Outperform from Neutral and raised its price target to $135.00 from $122.00 on a combination of estimated upside potential, merger benefits, attractive long-term earnings power, and recent pullback.

Barrington Research upgraded Fluent (NASDAQ:FLNT) to Outperform from Market Perform with a price target of $2.50.

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