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What Analysts Are Saying about Occidental Petroleum after 1Q16

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Wall Street analysts’ ratings for Occidental Petroleum

Currently, ~48% of Wall Street analysts rate Occidental Petroleum (OXY) as a “buy,” and ~41% of analysts rate it as a “hold.” Around 11% rate the stock as a “sell.”

The median price target from these recommendations is $75.99, which is almost the same as OXY’s May 6, 2016, closing price of $76.06.

Based on the median price targets of recommendations from Wall Street analysts, other upstream companies Marathon Oil (MRO), Diamondback Energy (FANG), and EnCana (ECA) have potential upsides of ~22%, ~9%, and ~25%, respectively, from their May 6, 2016, closing prices.

EnCana is primarily a natural gas (UNG) producer, as its 4Q15 production mix contained ~66% natural gas. Marathon Oil and Diamondback Energy had higher crude oil (USO) contents of ~53% and ~76%, respectively, in their 4Q15 production mixes.

The SPDR S&P Oil and Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies, whereas The ETF ISE-Revere Natural Gas Index ETF (FCG) invests in natural gas producers.

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Occidental Petroleum’s individual recommendations

As shown in above table, the most recent “buy” recommendation for OXY came from Societe Generale. It was issued on May 6, 2016. Societe Generale assigned Occidental Petroleum a target price of $79.97, ~5% higher than its May 6, 2016, closing price of $76.06. Societe Generale expects OXY to reach this target price within 12 months of the date of recommendation.

Atlantic Equities assigned Occidental Petroleum the lowest target price of $64.97, ~15% lower than its May 6 closing price. Atlantic Equities issued its recommendation on May 5. It expects OXY to reach this target price within the next 12 months.

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