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Investing.com - Raymond James raised its price target on Occidental Petroleum (NYSE:OXY) stock to $58.00 from $50.00 on Wednesday, while maintaining an Outperform rating. The new target represents a potential 21% upside from the current price of $48.05. According to InvestingPro analysis, OXY appears undervalued based on its Fair Value assessment.
The investment firm cited improved capital efficiency and slightly higher commodity strip prices as key factors for the target increase. Raymond James noted that Occidental recently posted in-line production results and lowered its capital expenditure guidance again. The company’s financial health appears solid, with InvestingPro data showing a strong 64% gross profit margin and a 52-year track record of maintaining dividend payments.
Occidental expects a quarter-over-quarter increase in Gulf of America volumes, though recent curtailments will likely reduce second-half 2025 offshore production. The company anticipates better U.S. onshore performance and increased production in Oman due to its Mukhaizna contract extension, which should offset the impact of these curtailments.
Raymond James forecasts third-quarter production of approximately 1,435 thousand barrels of oil equivalent per day (Mboe/d), aligning with both company guidance and Street expectations. The firm projects 2025 capital expenditures of about $7.2 billion and 2025 production of roughly 1,415 Mboe/d, both in line with consensus estimates.
For 2026, Raymond James estimates higher year-over-year production of approximately 1,446 Mboe/d on reduced spending of about $6.88 billion, reflecting the company’s improving operational efficiency. Analyst targets for OXY currently range from $40 to $64, with more insights available in the comprehensive Pro Research Report on InvestingPro, which offers detailed analysis of the company’s valuation, financial health, and growth prospects.
In other recent news, Occidental Petroleum reported its second-quarter 2025 earnings, surpassing Wall Street expectations. The company delivered an adjusted earnings per share of $0.39, exceeding the forecasted $0.34, and reported revenues of $6.46 billion, beating the expected $6.24 billion. These results marked a 14.71% earnings surprise. In analyst updates, Melius Research initiated coverage on Occidental Petroleum with a Hold rating and a price target of $64.00, noting the company’s diversified operations. Meanwhile, Morgan Stanley downgraded the stock from Overweight to Equalweight, citing concerns over Occidental’s higher-than-average debt levels and setting a price target of $52.00. CFRA also adjusted its outlook, raising its price target to $50.00 from $45.00, while maintaining a Hold rating. The firm based its analysis on a discounted cash flow model and enterprise value to EBITDA calculations. These developments reflect the ongoing analyst assessments and financial performance of Occidental Petroleum.
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