UPDATE: Deutsche Bank Downgrades Occidental Petroleum Corporation to Hold, Lowers PT
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
|Feb 2016||GMP Securities||Initiates Coverage on||Buy|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.