Morgan Stanley has revised its price target for Occidental Petroleum (OXY, Financial), reducing it from $58 to $48 while maintaining an Overweight rating on the stock. This adjustment comes as the firm updates its projections for North American energy companies, factoring in recent drops in oil prices.
In light of these changes, the firm has also modified its cash flow forecasts for 2025-26, setting them below the current consensus estimates. Morgan Stanley highlights an uncertain market environment as a reason for applying a larger discount to net asset value implied multiples, particularly for small and mid-cap producers, as well as those facing potential execution challenges.
The analytical team at Morgan Stanley continues to hold an In-Line view on the Exploration & Production (E&P) industry, reflecting ongoing soft fundamentals in the oil market over the short to medium term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Occidental Petroleum Corp (OXY, Financial) is $53.88 with a high estimate of $64.00 and a low estimate of $40.00. The average target implies an upside of 42.73% from the current price of $37.75. More detailed estimate data can be found on the Occidental Petroleum Corp (OXY) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Occidental Petroleum Corp's (OXY, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Occidental Petroleum Corp (OXY, Financial) in one year is $56.08, suggesting a upside of 48.56% from the current price of $37.75. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Occidental Petroleum Corp (OXY) Summary page.
