Analyst Jean Ann Salisbury from Bank of America Securities reiterated a Hold rating on Occidental Petroleum (OXY – Research Report) and decreased the price target to $42.00 from $52.00.
Jean Ann Salisbury has given her Hold rating due to a combination of factors impacting Occidental Petroleum’s financial outlook. The company is taking strategic measures to manage a challenging oil price environment by reducing its fiscal year 2025 spending while maintaining stable production levels. This includes significant cuts in capital expenditures and operating expenses, particularly in the Permian region and the Gulf of America, which reflect efficiency improvements and deferred maintenance.
Furthermore, Occidental’s efforts to strengthen its balance sheet by repaying debt ahead of schedule provide some financial flexibility. However, despite these positive steps, the cautious outlook on oil prices limits the potential for substantial shareholder returns in the near term. The anticipated free cash flow improvements starting in the second quarter of 2025 are promising, but meaningful returns are not expected until 2028, justifying the Hold rating.
According to TipRanks, Ann Salisbury is a 4-star analyst with an average return of 9.7% and a 55.56% success rate. Ann Salisbury covers the Energy sector, focusing on stocks such as Occidental Petroleum, Phillips 66, and Venture Global, Inc. Class A.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $48.00 price target.