Analyst Neil Mehta from Goldman Sachs maintained a Sell rating on Occidental Petroleum and keeping the price target at $57.00.
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Neil Mehta has given his Sell rating due to a combination of factors including the quality and sustainability of Occidental Petroleum’s recent results. While first-quarter earnings and cash flow exceeded expectations, much of the upside was driven by the midstream segment, which may not offer the same level of recurring strength as core upstream operations.
Mehta also points to softer production guidance versus his and the market’s forecasts, alongside a capital spending plan that remains relatively elevated, which could constrain future free cash generation. In addition, questions around the CEO transition, longer-term growth strategy, and reliance on asset sales introduce execution and strategic risk, leading him to keep a cautious stance with an unchanged $57 price target.