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Bank of America downgrades Chevron, citing risk of losing some overseas production deals

September 6, 2018

Bank of America Merrill Lynch is getting less optimistic on Chevron shares due to rising competition over energy deals.

The firm lowered its rating to neutral from buy for Chevron shares, saying the renewals for the company’s key Asian projects may be more difficult than expected.

“Chevron will continue to benefit from any continued strength in oil prices. But given emerging uncertainties around spending and PSC [production sharing contract] renewals … a more selective sector view that acknowledges the tailwind from the commodity as largely played out,” analyst Doug Leggate said in a note to clients Thursday.

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