Occidental Petroleum (OXY – Research Report), the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Jean Ann Salisbury from Bank of America Securities maintained a Hold rating on the stock and has a $52.00 price target.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Jean Ann Salisbury has given her Hold rating due to a combination of factors related to Occidental Petroleum’s recent performance and future outlook. The company’s 2025 guidance, while somewhat unclear due to factors like ethane rejection and divestments, aligns with expectations. Although the projected production seems slightly lower than consensus, adjustments for these factors bring it in line. Additionally, a rise in oil output driven by GoA volumes is a positive indicator, yet the first quarter of 2025 is expected to face challenges due to operational expenses and lower volumes.
Occidental’s focus on reducing its debt following the CrownRock deal is promising, with a target debt reduction fueled by asset sales. While these efforts are steps toward financial stability, Salisbury’s cautious approach to oil prices suggests that significant shareholder returns may not materialize until 2027. Despite strong fourth-quarter results, driven by higher-than-expected production and midstream performance, a one-time environmental liability charge impacted overall earnings, reinforcing the decision to maintain a Neutral stance.
In another report released today, Barclays also maintained a Hold rating on the stock with a $58.00 price target.
OXY’s price has also changed moderately for the past six months – from $57.390 to $50.990, which is a -11.15% drop .