Stephens lowers Occidental Petroleum stock price target on pricing

Stephens lowers Occidental Petroleum stock price target on pricing

US concludes third round of strikes against Iran after Trump reinstates blockade Investing.com - Stephens lowered its price target on Occidental Petroleum stock (NYSE:OXY) to $69 from $73 on Monday while maintaining an Overweight rating. The stock currently trades at $54.81, suggesting potential upside to the new target, and InvestingPro analysis indicates the company remains undervalued at current levels. The firm’s second-quarter 2026 cash flow per share and free cash flow estimates are 6% and 17% below consensus on in-line production, largely due to pre-released realized pricing on July 10, 2026.

Midstream and marketing pre-tax income likely remained robust with surging sulfur prices, partially offset by lower volumes versus the first quarter of 2026. Waha basis should narrow with new egress pipelines in the second half of 2026. Sulfur prices continued to spike this month, implying further upside to 2026 midstream and marketing pre-tax guidance of $1.0 billion to $1.2 billion, which assumed sulfur prices normalized beginning in the third quarter of 2026.

Stephens anticipates its second-quarter 2026 and full-year 2026 cash flow per share and free cash flow estimates could be slightly above consensus after numbers are updated for pre-released prices. The firm looks for additional color on longer-term three-year plans as management anticipates a stock re-rating when Occidental Petroleum redeems its remaining $8.5 billion of preferred equity, expected in the third quarter of 2029. According to InvestingPro Tips, the company has maintained dividend payments for 53 consecutive years, underscoring its commitment to shareholder returns.

The price target adjustment is primarily based on updated prices. In other recent news, Occidental Petroleum has been the focus of several analyst updates. Mizuho has reiterated its Outperform rating for Occidental Petroleum, maintaining a price target of $75.00.

The firm anticipates a potential decrease of around 6% in second-quarter 2026 estimates for EBITDAX and cash flow per share, as pre-published price realizations are factored in. Meanwhile, Goldman Sachs has upgraded Occidental Petroleum from a Sell to a Neutral rating, raising the price target to $64. This upgrade is attributed to significant progress in reducing the company’s absolute debt, aided by asset sales and higher oil prices.

Additionally, Goldman Sachs highlighted the company’s ongoing efforts to lower capital intensity and operating costs. The energy sector, including Occidental Petroleum, has seen fluctuations due to changes in crude oil prices, which recently fell following an agreement between Washington and Tehran. However, tensions in Iran have previously caused oil prices to rise, impacting the trading of energy stocks.