** Citigroup cuts price target on U.S.-based oil and gas companies as challenges for the energy sector carry over into 2025
** Brokerage sees no scope for OPEC+ to reverse production cuts in 2025, leaving an est. 8 mln barrels per day (mbpd) of global oil market capacity on the sidelines
** Says "while we expect OPEC+ to stick to its current strategy and keep this oil out of the market, capacity excess means there is neither need for commodity price nor asset price (equities) inflation"
** "2025 shouldn’t look any different – the oil market will still be in overcapacity – unless the sector finds valuation support" - Citigroup adds
** However, brokerage upgrades oil major Chevron to "buy" from "neutral" and raises PT to $185 from $145; sees upside from Hess merger arbitration in 2025
Company New PT Old PT Upside to
stock's
last close
APA Corp $24 $29 6%
Devon Energy $48 $55 25%
Ovintiv $54 $55 18%
Occidental $56 $57 11%
Petroleum
(Reporting by Pooja Menon in Bengaluru)
((Pooja.Menon@thomsonreuters.com;))
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