In a report released today, Arun Jayaram from J.P. Morgan reiterated a Hold rating on Occidental Petroleum, with a price target of $48.00.
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Arun Jayaram’s rating is based on several factors influencing Occidental Petroleum’s current and future performance. The company is expected to report a lackluster second quarter in 2025, with earnings per share and cash flow per share estimates falling short of consensus expectations. Additionally, production volumes are projected to be slightly below guidance due to operational challenges, including third-party constraints and maintenance delays.
Despite Occidental’s efforts in deleveraging and managing its balance sheet, the recent acquisition of CrownRock has added to its debt burden, which is expected to remain above the industry average until 2027. The company is also facing economic risks in its chemical segment due to global trade uncertainties. While there are potential tax benefits from recent legislation, these are not quantified and do not offset the broader challenges. Consequently, Jayaram maintains a Hold rating, reflecting a cautious outlook amidst these mixed factors.
In another report released yesterday, Mizuho Securities also maintained a Hold rating on the stock with a $65.00 price target.