Chevron (CVX) is moving to a period of structurally lower capital intensity and execution risk, and growing production, RBC Capital Markets analysts said in a Wednesday note.

Analysts said that the recent weakness in Chevron shares presents a buying opportunity.

RBC said its updated model points to higher free cash flow yields relative to its closest peer Exxon Mobil (XOM), between 2026 and 2028, with Chevron being competitive with its European peers.

Chevron appears to be in discussions over exploration across several countries, including Libya and Iraq, RBC said. The company plans to grow production by 2-3% per annum until 2030, with growth beyond in regions such as Argentina, analysts said.

"The company continues to see attractive demand growth in chemicals over the longer-term, while forays on the power front remain measured," analysts said.

RBC has an outperform rating on the stock and a $175 price target.

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