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Goldman Sachs’ new sell rating and lowered price target reflect a cautious outlook on Occidental Petroleum (NYSE:OXY)’s ability to deliver shareholder value in a stable oil price environment, where return of capital is increasingly important for investor consideration. Trading at a P/E ratio of 11.81 and generating $12.93 billion in EBITDA, InvestingPro’s comprehensive analysis indicates that OXY is currently undervalued based on its proprietary Fair Value model. For deeper insights into OXY’s valuation and financial health, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers. Trading at a P/E ratio of 11.81 and generating $12.93 billion in EBITDA, InvestingPro’s comprehensive analysis indicates that OXY is currently undervalued based on its proprietary Fair Value model. For deeper insights into OXY’s valuation and financial health, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
Goldman Sachs’ new sell rating and lowered price target reflect a cautious outlook on Occidental Petroleum’s ability to deliver shareholder value in a stable oil price environment, where return of capital is increasingly important for investor consideration. Trading at a P/E ratio of 11.81 and generating $12.93 billion in EBITDA, InvestingPro’s comprehensive analysis indicates that OXY is currently undervalued based on its proprietary Fair Value model. For deeper insights into OXY’s valuation and financial health, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
The report indicates that while managing the balance sheet is a responsible strategy given the current level of leverage, Occidental Petroleum’s stock is expected to lag behind its peers. This is partly because the company won’t be able to protect its share value during market downturns as effectively as others who might engage in aggressive share repurchase programs.
Furthermore, the redemption of preferred equity, which requires cash returns through dividends or share repurchases of $4 per share, is anticipated to be postponed for a significant period. This deferral is seen as another factor that may contribute to the stock’s underperformance in comparison to its industry counterparts.
Goldman Sachs’ new sell rating and lowered price target reflect a cautious outlook on Occidental Petroleum’s ability to deliver shareholder value in a stable oil price environment, where return of capital is increasingly important for investor consideration.
In other recent news, oil and gas producer Civitas Resources is contemplating the sale of its Denver-Julesburg Basin assets in Colorado, with potential valuations exceeding $4 billion. This move could facilitate further acquisitions and debt reduction for the company. In parallel, Occidental Petroleum has been the subject of recent analyst evaluations. Mizuho (NYSE:MFG) Securities reduced its price target for the company to $68, maintaining a neutral stance, while JPMorgan raised its price target to $59, also maintaining a neutral rating. Both adjustments were made in anticipation of the company’s fourth-quarter earnings. Furthermore, Occidental Petroleum has been progressing ahead of schedule with its debt reduction efforts following the CrownRock divestiture. Lastly, the company has been attracting investor interest due to potential U.S. sanctions on the Russian oil industry, which could lead to higher oil prices and tighter markets.
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