UPDATE - Barclays Downgraded Occidental Petroleum (OXY) to Equalweight; Underwhelming Production Growth Despite Higher Spending
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Price: $61.54 +2.41%
Rating Summary:
19 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 13 | New: 20
Rating Summary:
19 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 13 | New: 20
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UPDATE - Barclays downgraded Occidental Petroleum (NYSE: OXY) from Overweight to Equalweight and cut its price target from $118 to $108.
Barclays analyst said, "Renewed California silt/shale play enthusiasm has driven OXY shares higher - too much too soon, in our opinion. The targeted 200,000 boepd over 10 years would add ~20%, or about 2% annually, to volumes. The 13% outperformance over the past 30 days (vs. the EPX index) seems to overlook the required capital spending, risks, and the time it will take to develop the resource; the outperformance seems excessive, in our view."
"Valuation. We are cutting our price target by $10 to $108 primarily to reflect higher than previously anticipated 2011 spending. With last week's outperformance relative to the group, OXY now trades at 7.0x our 2012E cash flow - a 20% premium to peers."
To see all upgrades/downgrades on shares of OXY, visit our Analyst Ratings page.
Barclays analyst said, "Renewed California silt/shale play enthusiasm has driven OXY shares higher - too much too soon, in our opinion. The targeted 200,000 boepd over 10 years would add ~20%, or about 2% annually, to volumes. The 13% outperformance over the past 30 days (vs. the EPX index) seems to overlook the required capital spending, risks, and the time it will take to develop the resource; the outperformance seems excessive, in our view."
"Valuation. We are cutting our price target by $10 to $108 primarily to reflect higher than previously anticipated 2011 spending. With last week's outperformance relative to the group, OXY now trades at 7.0x our 2012E cash flow - a 20% premium to peers."
To see all upgrades/downgrades on shares of OXY, visit our Analyst Ratings page.
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