Analysts at RBC Capital provided their views on Chevron Corporation (NYSE:CVX) following the stock price gains in the last several months. The company was downgraded to sector perform from outperform and the price target was raised to $165 from $160.

While the analysts expect commodity prices to remain strong, they believe the current valuation leaves less room for positive surprise, while headwinds with Tengiz realizations could weigh on earnings relative to peers.

While the company doesn’t have direct exposure to Russian operations, as some of its peers, shares of which were punished by the markets in the last several months, its Tengiz volumes in Kazakhstan (more than 10% of group production) are transported through the CPC pipeline which runs through Russia, and are exported via a Russian port.

Tengiz differentials have widened materially in recent weeks and the analysts expect this effect could linger for some time.