Analyst David Deckelbaum from TD Cowen maintained a Hold rating on Occidental Petroleum (OXY – Research Report) and keeping the price target at $45.00.
David Deckelbaum has given his Hold rating due to a combination of factors surrounding Occidental Petroleum’s recent performance and strategic decisions. The company’s production volumes were slightly below expectations, and while EBITDAX exceeded forecasts, the operating margin was impacted by higher unit costs and lower realized pricing. Additionally, Occidental’s capital expenditures were marginally higher than anticipated, leading to a decrease in free cash flow.
On the positive side, Occidental has made significant strides in debt reduction, repaying substantial amounts in recent months. The company also plans to cut capital expenditures and operating expenses, which could improve financial flexibility in the future. However, the mixed production guidance and the balancing act between cost reductions and maintaining production levels contribute to the Hold rating, as these factors suggest a cautious outlook for the stock.
According to TipRanks, Deckelbaum is an analyst with an average return of -4.6% and a 35.64% success rate. Deckelbaum covers the Energy sector, focusing on stocks such as APA, Devon Energy, and EQT.
In another report released yesterday, Roth MKM also maintained a Hold rating on the stock with a $42.00 price target.