Devin McDermott, an analyst from Morgan Stanley, maintained the Buy rating on Occidental Petroleum (OXY – Research Report). The associated price target remains the same with $58.00.
Devin McDermott has given his Buy rating due to a combination of factors that highlight Occidental Petroleum’s strong financial and strategic positioning. The company’s management has demonstrated confidence in maintaining a robust cash flow and achieving debt reduction targets, even in a volatile market environment. This is supported by a diverse portfolio that includes high-return shale and low-decline conventional assets, which have a low breakeven point of $40 per barrel.
Additionally, Occidental Petroleum has shown flexibility in its capital and operational expenditures, allowing it to adapt to fluctuating oil prices. The company can cover its 2025 capital program and dividends at $55 WTI, with management prepared to make adjustments if necessary. Furthermore, the focus on sustainable free cash flow growth through investments in both traditional oil and gas and low-carbon opportunities underscores the company’s commitment to long-term value creation. These factors contribute to the belief that Occidental Petroleum’s shares are undervalued and present a compelling investment opportunity.
In another report released on April 3, Stephens also maintained a Buy rating on the stock with a $60.00 price target.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OXY in relation to earlier this year.