** 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;))