Occidental Petroleum's Target Price Raised Amid Strong Oil Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2024
0mins
Should l Buy OXY?
Source: Business Insider
Occidental Petroleum Corp's stock has fallen 5.00% and has crossed below its 5-day SMA, despite the broader market rally with the Nasdaq-100 up 1.73% and the S&P 500 up 1.16%.
The decline in Occidental's stock comes amid a significant increase in oil prices driven by the ongoing conflict with Iran, which has pushed Brent crude prices over $100 per barrel. However, Morgan Stanley recently raised its target price for Occidental from $53 to $73, reflecting a positive outlook for the company despite the current stock movement. This adjustment indicates strong confidence in Occidental's financial performance, particularly following its $9.7 billion sale of its chemicals subsidiary, which is expected to enhance its cash flow and balance sheet.
The implications of this situation suggest that while Occidental's stock is currently under pressure, the overall market conditions and analyst upgrades could provide a foundation for recovery. Investors may want to monitor the developments in oil prices and the company's financial strategies moving forward.
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Analyst Views on OXY
Wall Street analysts forecast OXY stock price to fall
16 Analyst Rating
4 Buy
9 Hold
3 Sell
Hold
Current: 62.230
Low
38.00
Averages
47.27
High
64.00
Current: 62.230
Low
38.00
Averages
47.27
High
64.00
About OXY
Occidental Petroleum Corporation is an international energy company with assets primarily in the United States, the Middle East and North Africa. The Company is an oil and gas producer in the United States, including a producer in the Permian and DJ basins, and the offshore Gulf of Mexico. Its segments include oil and gas, and midstream and marketing. The oil and gas segment explores for, develops, and produces oil (which includes condensate), natural gas liquids (NGL) and natural gas. The Company's midstream and marketing segment purchases, markets, gathers, processes, transports, and stores oil (which includes condensate), NGL, natural gas, carbon dioxide (CO2) and power. The midstream and marketing segment provides flow assurance and maximizes the value of its oil and gas. It also optimizes its transportation and storage capacity and invests in entities that conduct similar activities. This segment also includes low-carbon venture businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Divergent Energy Sector Performance: Energy producers like Diamondback Energy rose over 2% due to soaring WTI prices, while airline stocks such as American Airlines and Carnival fell more than 4% as rising fuel costs cut into profits, highlighting a clear divergence across sectors.
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- Unemployment Claims Drop: Weekly initial unemployment claims unexpectedly fell by 9,000 to 202,000, indicating a stronger labor market than the anticipated increase to 212,000, which could provide support for the stock market amid rising inflation concerns.
- Global Market Decline: Overseas stock markets are lower, with the Euro Stoxx 50 down 2.25%, China's Shanghai Composite down 0.74%, and Japan's Nikkei 225 sharply falling 2.38% from a two-week high, reflecting global economic uncertainty and investor caution.
- Airline Stocks Plummet: Airline stocks are sharply lower as crude oil prices surged over 10%, raising fuel costs; United Airlines and American Airlines Group both fell more than 6%, highlighting the direct impact of rising oil prices on airline profitability.
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- Korean Market Plunge: The KOSPI index in South Korea dropped 4.47% to close at 5,234.05, making it the worst-performing market in the region despite opening over 1% higher.
- Japanese Market Reaction: Japan's Nikkei 225 fell 2.38% to 52,463.27 after Trump's speech, indicating the market's sensitivity to geopolitical tensions.
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