UPDATE: Stifel Starts Occidental Petroleum (OXY) at Buy

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(Updated - April 5, 2022 4:06 PM EDT)

Stifel analyst Michael Scialla initiates coverage on Occidental Petroleum (NYSE: OXY) with a Buy rating and a price target of $84.00.

The analyst commented, "Despite the stock's strong YTD performance (+99% compared to the XOP of +45%) supported by purchases of top shareholder, Berskshire Hathaway, we believe OXY remains attractively valued with a best-in-class 2022E FCF yield of 26% and 2022 EV/EBITDA more than half-a-turn below our peer group average. An emerging low carbon business centered around direct air capture is largely underappreciated, in our view, due to its reliance on voluntary and compliance offset markets for hard to abate emissions and the consensus opinion that it will generate low returns. We believe the pace of offset market expansion could surprise investors while the improvement in enhanced oil recovery resource and margins positively impacts direct air capture economics. A rapidly deleveraging balance sheet and share repurchase program should also support the stock. We are initiating coverage with a Buy rating and a 12-month target price of $84."

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 $57.79 yesterday.

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