Raymond James Downgrades Occidental Petroleum (OXY) to Outperform

Raymond James analyst John Freeman downgraded Occidental Petroleum (NYSE: OXY) from Strong Buy to Outperform with a price target of $64.00 (from $81.00).

The analyst commented: "We’re updating estimates following the big pullback in oil prices. As mentioned in our 4Q24 Quick Take (link), OXY posted a solid quarter, beating Street EPS by ~18%. Our estimated 1Q25 total production of ~1,390 Mboe/d (mix of ~50.6%) lands in-line with guidance/Street, while 1Q25 capex of ~$1.91B is ~2% below recent Street estimates (~$1.95B). In 2025, RJe production of ~1,415 Mboe/d is in-line and roughly ~7% growth y/y. 2025 capex of ~$7.5B is roughly in-line. We estimate a ~6% FCF yield (FCF/EV) this year. OXY has been one of our favorite oil stocks. However, the relative outperformance (~13%) the past month during the sector sell-off (OXY is one of the few stocks still up over that timeframe) and near-term uncertainty on oil prices has us taking a slightly more cautious near-term stance. Likewise, we are downgrading to an Outperform rating and decreasing our target price to $64 primarily due to the significantly weaker oil strip since our last publication."

For an analyst ratings summary and ratings history on Occidental Petroleum click here. For more ratings news on Occidental Petroleum click here.

Shares of Occidental Petroleum closed at $47.24 yesterday.

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