On April 10, 2023, reports emerged that Mizuho had lowered the target price for Occidental Petroleum (NYSE:OXY) from $83.00 to $79.00. This move comes as the oil and gas producer has recently announced quarterly earnings that missed analysts’ consensus estimates of $1.83 by $0.22.
Despite this setback, Occidental Petroleum remains a major player in the oil and gas industry, with a diverse portfolio that includes exploration and production of oil and natural gas, chemicals, and midstream and marketing services.
Within its Oil and Gas segment, Occidental Petroleum continues to explore for new sources of oil and condensate, as well as natural gas liquids and natural gas. These efforts have paid off in recent years, with the company reporting a 97.6% increase in quarterly revenue compared to the same period last year.
One factor contributing to Occidental Petroleum’s success is its commitment to high levels of return on equity – a metric used by investors to measure how effectively a company is using its assets to generate profits. With a return on equity of over 52%, Occidental Petroleum has outperformed many of its competitors.
Looking ahead, sell-side analysts are optimistic about what the future holds for Occidental Petroleum. Although there may be some challenges in the short-term due to lower earnings than expected, many experts believe that the company will continue to perform strongly over the long-term.
All things considered, it is clear that Occidental Petroleum remains at the forefront of innovation within the oil and gas sector. Whether it’s through exploring new sources of energy or maximizing returns on investment, this is a company that continues to push boundaries – demonstrating that there is still plenty of potential for growth within one of the world’s most valuable industries.
An Analysis of Occidental Petroleum’s Recent Ratings and Forecasts
On Monday, April 10th, Occidental Petroleum opened at $63.04 per share – a figure that may have sparked mixed reactions among investors due to recent ratings and forecasts by equities research analysts. The company’s one-year low was recorded at $51.53 while the one-year high was at $77.13. With a market capitalization of $56.62 billion, the chemical, oil and gas exploration firm maintains operations in three dominant segments – Oil and Gas, Chemical, and Midstream and Marketing.
Several equities research analysts have recently given their views on OXY’s forecast leading to multiple rating revisions for the company. In February 22nd Evercore ISI cut shares of Occidental Petroleum from an “in-line” rating to an “underperform” rating as they dropped their target price for the stock from $74.00 to $60.00. Similarly, Piper Sandler lowered their price objectives on shares of Occidental Petroleum from $76.00 to $69.00, categorizing the firm as “neutral”, while Raymond James dropped its price target down from $80 to $75 offering a strong buy recommendation.
However, Goldman Sachs stood out with confidence in their assessment for OXY by raising its rating from “neutral” to “buy” earlier this year in February along with setting up a bullish target price of $81 for the company as it entered Q2.
In March there was news of Berkshire Hathaway investing in Occidental buying approximately 1.7 million shares valued at roughly USD106 million suggesting more good things are due ahead for the oil giant.
Additionally several hedge funds took stakes such as Orion Capital Management LLC which bought a stake worth USD26k back in December 2022 followed by Hanseatic Management Services Inc which purchased shares worth USD33k thereby reflecting investor interest in Occidental.
Insiders have also been trading significant number lately with over 12 million shares valued at approximately $735 million being bought over the last quarter totaling to 0.31% of the company’s entire stock.
With mixed reviews from different analysts in a quick moving industry, it’s sensible for investors to do their due diligence and make informed decisions based on available information as well as risk tolerance level. However, with conglomerate Berkshire Hathaway among investors backing Occidental Petroleum, the prospects seem promising in the long-term.
