Melius initiates coverage on Occidental Petroleum stock with Hold rating

Investing.com - Melius Research initiated coverage on Occidental Petroleum (NYSE:OXY) with a Hold rating and a $64.00 price target on Wednesday. According to InvestingPro data, this target represents potential upside from the current price of $43.96, with analyst targets ranging from $40 to $64.

The research firm cited Occidental’s diversified operations across oil and gas production, chemicals, marketing, and carbon capture as key factors in its assessment. The company, with a market capitalization of $43.2 billion, has maintained dividend payments for 52 consecutive years, demonstrating operational stability.

Melius highlighted Occidental’s expertise in carbon capture and enhanced oil recovery technologies, noting the company is actively developing direct carbon capture assets.

The firm also pointed to Occidental’s position as a major producer in the Permian Basin, one of North America’s most productive oil regions.

Melius additionally noted in its coverage initiation that Occidental maintains operations beyond the United States, with a presence in the Middle East and North Africa. The company’s global footprint contributes to its overall financial health score of "FAIR" according to InvestingPro’s comprehensive evaluation metrics.

In other recent news, Occidental Petroleum reported its second-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an adjusted earnings per share (EPS) of $0.39, exceeding the forecasted $0.34, marking a 14.71% earnings surprise. Additionally, Occidental reported revenue of $6.46 billion, which was higher than the anticipated $6.24 billion. In analyst updates, Morgan Stanley (NYSE:MS) downgraded Occidental Petroleum from Overweight to Equalweight, citing concerns over the company’s debt, with a price target set at $52.00. Morgan Stanley highlighted Occidental’s debt-to-EBITDA ratio, projected to be around 2x by the end of 2025, as a factor in their decision. Meanwhile, CFRA raised its price target for Occidental to $50.00 from $45.00, maintaining a Hold rating. CFRA’s revised target is based on enterprise value to EBITDA and discounted cash flow model analyses. These developments reflect the mixed sentiments among analysts regarding Occidental Petroleum’s financial outlook.

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