Wells Fargo double upgrades Occidental to Overweight, raises target to $69

As previously reported, Wells Fargo analyst Sam Margolin double upgraded Occidental (OXY) to Overweight from Underweight with a price target of $69, up from $47. The firm says the company’s peer-leading oil sensitivity is both an opportunity and a risk, but it’s primarily Permian capital efficiency trends informing this rating change. Occidental adjusted its Permian spending plan from $3.9B to $3.1B, while maintaining production growth, Wells adds. This capability is enabled by a combination of factors, including strong underlying productivity, pivot to child wells, and enhanced oil recovery, which dampens observable base decline. The firm believes the company can produce slightly ahead of guidance in 2026 and resume an accelerated growth trend in 2027 back to $3.5B in capital.