Chevron's downgrade at Goldman Sachs comes after 'multiyear outperformance'

Analysts at Goldman Sachs on Tuesday downgraded shares of Chevron Corp. to their equivalent of hold, from buy, saying that after years of outperformance their upside is limited. "We continue to have a positive view of the balance sheet, dividend sustainability, growth outlook in the Permian, and free cash flow from the Australia LNG assets," they said. But Chevron trades at a premium compared with peers and construction of its Tengiz project in Kazakhstan could become costlier, the analysts said. Shares of Chevron have gained 30% in the past 12 months, compared with gains of around 53% for the S&P 500 index.

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