Occidental Petroleum reinstated with a Neutral at JPMorgan

JPMorgan reinstated coverage of Occidental Petroleum (OXY) with a Neutral rating and $56 price target The firm says the macro picture for oil levered equities is a “mixed bag” given uncertainty associated with post U.S. election policies, the Iran-Israel conflict, and a potentially contentious OPEC+ meeting in early December. The firm is “relatively cautious” on near-term crude oil fundamentals given the potential return of OPEC+ barrels into a market. It feels a Neutral rating is warranted on Occidental given its above-average leverage and lower return of capital yields versus peers at strip pricing.