ChevronTexaco "neutral weight"

04/05/05 - Prudential Financial

NEW YORK, April 5 (newratings.com) - Analyst Michael Mayer of Prudential Financial maintains his "neutral weight" rating on ChevronTexaco Corporation (CVX). The target price is set to $65.

In a research note published yesterday, the analyst mentions that the company is acquiring Unocal for approximately $18.4 billion in a stock and cash deal. The analyst expects the acquisition to be accretive to ChevronTexaco's cash flows, to be marginally dilutive to book returns and to boost the company's reserves by 15%. The company expects to realize significant synergies from this acquisition in the near term. According to Prudential Financial, the Unocal acquisition price is reasonable.