Market Overview

UPDATE: Deutsche Bank Downgrades Occidental Petroleum Corporation to Hold, Lowers PT

Related OXY
These ETFs Should Like The Apache Takeover Rumor
The Massive Energy M&A Cycle Could Be Arriving Soon
Can't Go Wrong With Rite-Aid - Cramer's Lightning Round (11/24/15) (Seeking Alpha)

In a report published Monday, Deutsche Bank downgraded its rating on Occidental Petroleum Corporation (NYSE: OXY) from Buy to Hold, and lowered its price target from $95.00 to $80.00.

Deutsche Bank noted, “We pushed Oxy on the California story, then buyback. Where previously the US was low growth/high free cashflow, the Middle East the growth driver, now the quest for organic growth in the US has seen capex soar while volumes are forecast to drop below the 5% target next year. Disclosure has been relatively limited, making it difficult to understand either muted volumes & earnings growth or long term value. Over time, our thesis has drifted and our last hope, of a total change of strategy towards cash return to shareholders through a 50%+ increase in dividend, is not within current plans or outlook. The story is not broken, but the premium story has been diluted, and although the multiple is reduced, the stock still does not screen as cheap. Cut to HOLD.”

Occidental Petroleum Corporation closed on Friday at $75.21.

Latest Ratings for OXY

Oct 2015WolfeUpgradesOutperform
Sep 2015BMO CapitalInitiates Coverage onOutperform
Sep 2015CitigroupMaintainsNeutral

View More Analyst Ratings for OXY
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Downgrades Analyst Ratings


Related Articles (OXY)

Get Benzinga's Newsletters