TD Cowen analyst David Deckelbaum maintained a Hold rating on Occidental Petroleum yesterday and set a price target of $45.00.
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David Deckelbaum has given his Hold rating due to a combination of factors influencing Occidental Petroleum’s current and future performance. The company reported strong results in the third quarter, particularly with outperformance in the Permian and DJ basins, and a notable cash flow beat from its midstream segment. However, despite these positive aspects, the guidance for the fourth quarter indicates a lower oil cut in the Permian, which tempers some of the optimism.
Occidental Petroleum is actively working on reducing its debt, having repaid a significant amount over recent quarters, and plans to continue this trend with proceeds from asset sales. While these efforts are commendable and contribute to financial stability, the overall production guidance remains largely in line with expectations, with some areas slightly underperforming. The combination of these mixed signals—strong operational performance but cautious future guidance—supports the decision to maintain a Hold rating, suggesting that while the company is on a stable path, there may not be immediate catalysts for significant stock appreciation.
In another report released yesterday, Roth MKM also maintained a Hold rating on the stock with a $39.00 price target.