HSBC thinks oil giant Chevron stands to benefit from a recovery in oil prices. The firm upgraded shares of Chevron to buy from hold, with a $189 price target, which represents about 24% upside from Monday's close. Chevron shares are down nearly 10% this month. HSBC analyst Kim Fustier thinks that's mainly due to a drop in oil prices — U.S. crude oil is down 6% in May — noting it opens a buying opportunity. Meanwhile, the International Energy Association recently warned of a pending oil shortage that could lift prices higher in its monthly report for May .

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Persons: Kim Fustier, that's, Fustier, Brent, — CNBC's Michael Bloom Organizations: HSBC, Chevron, Exxon, International Energy Association Locations: Chevron