Occidental Petroleum (OXY) Stock Price Expected to Rise

Analyst at Jefferies Financial Group Issues Buy Rating

Occidental Petroleum (NYSE: OXY) has been given a buy rating by Jefferies Financial Group. The analyst firm has set a price target of $80 for the stock, which implies a potential upside of over 20% from its current price of $66. The rating upgrade is based on the firm’s belief that Occidental is well-positioned to benefit from the rising oil and gas prices. Jefferies also cited the company’s strong execution of its strategic plan and its commitment to shareholder returns.

Occidental Petroleum’s Financial Performance

Occidental Petroleum has reported strong financial performance in recent quarters. In the first quarter of 2023, the company reported earnings per share of $3.04, which beat analysts’ estimates by $0.27. Revenue for the quarter came in at $10.6 billion, which was also above expectations. The company’s strong financial performance is being driven by the rising oil and gas prices.

Occidental Petroleum has a strong track record of returning capital to shareholders. The company has increased its dividend for 13 consecutive years. The company also recently announced a $3 billion share buyback program.

Risks to Consider

There are some risks to consider before investing in Occidental Petroleum. The company’s stock price is closely tied to the price of oil and gas. If oil and gas prices decline, Occidental’s stock price could also decline. Additionally, the company is facing some legal challenges related to its acquisition of Anadarko Petroleum.

Conclusion

Overall, Occidental Petroleum is a well-positioned company with a strong track record of financial performance. The company is benefiting from the rising oil and gas prices and is committed to returning capital to shareholders. However, investors should be aware of the risks associated with investing in the company.