Oil giant Chevron’s discount relative to peers has created an attractive entry point, according to Citi. Analyst Alastair Syme upgraded shares to buy from neutral. He also raised his price target to $185 from $145, indicating 15.4% upside potential from Monday’s close. Chevron is up just 7.5% year to date, lagging the S & P 500’s 25% advance in that time. Rival Exxon Mobil has also outperformed Chevron, up 20% in 2024. Syme forecasts the valuation gap between Chevron and Exxon Mobil to reach “a historically wide gap” of 20% as soon as 2026. CVX .SPX,XOM YTD mountain Chevron versus the S & P 500 and ExxonMobil in 2024 Syme cited Chevron’s relative stock weakness to the company’s fight with ExxonMobil regarding ownership of Hess’ oil assets in Guyana . If the arbitration panel rules in favor of Exxon, Chevron’s merger deal with Hess, announced earlier this year, will not close. “It is this valuation gap that we think positions investors to take a view around the unknown outcome of the Hess arbitration in 2025; the downside looks protected, the upside is significant. Added to that is the potential of high-impact exploration in Namibia in the coming months,” Syme wrote in a Tuesday note. Chevron’s exploration of the Tengiz Field in Kazakhstan next year will also deliver on growth and provide a “critical element of de-risking in this growth story,” per Syme. Shares of Chevron rose 1% Tuesday before the bell. —CNBC’s Michael Bloom contributed to this report.