UPDATE: Morgan Stanley Upgrades Occidental Petroleum (OXY) to Overweight on Compelling Risk/Reward

June 18, 2021 2:23 AM EDT
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Price: $26.53 +3.27%

Rating Summary:
    15 Buy, 20 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 23 | New: 45
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(Updated - June 18, 2021 2:40 AM EDT)

Morgan Stanley analyst Devin McDermott upgraded Occidental Petroleum (NYSE: OXY) from Equalweight to Overweight with a price target of $40.00 (from $32.00).

The analyst comments "More compelling risk-reward against a backdrop of sustained higher oil prices; upgrade to Overweight. Over the past year, management has taken key steps to derisk the business by extending maturities,executing on synergies,and divesting non-core assets. Now, with WTI near ~$70/bbl and Morgan Stanley Oil Strategist Martijn Rats recently boosting his long-term Brent forecast to $60/bbl, we are updating our estimates and outlook. Rebounding margins and strong FCF position OXY to offer one of the more differentiated rate of change stories with its high quality upstream assets,above average FCF/equity yield (although FCF/EV still lags peers),and unique position in a lower-carbon energy future through OXY Low Carbon Ventures (OLCV). We are upgrading to Overweight and our $40 price target (up from $32) implies 42% upside."

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 $28.22 yesterday.

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