Oppenheimer Reiterates Outperform on Occidental Petroleum, Stock Down Slightly Over Last Two Trading Sessions
Occidental Petroleum (NYSE: OXY) shares are continuing lower Friday afternoon following a $0.20 decline on Thursday despite a call from Oppenheimer analyst Fadel Gheit reassuring a tax-free transaction could be the most favorable course of action. The stock is down another half percent Friday, last trading around $91.64.
Gheit analyzed a possible increase in valuation of with restructuring aimed to improve shareholder value. OXY's restructuring plan has not yet been revealed, but the Oppenheimer analyst pointed out Occidental CEO Stephen Chazen mentioned a “potential spinoff of California ops is one of a few options the board is considering” in a July call with Bloomberg. Gheit reported that “separating most of its operations into standalone companies and spinning them off to its shareholders in tax-free transactions may be the best course of action.” Selling these assets abroad would “require government approvals, is less transparent and is tax- inefficient.”
Oppenheimer currently rates Occidental with an Outperform rating and $115 price target.
Latest Ratings for OXY
|Jun 2015||Deutsche Bank||Upgrades||Hold||Buy|
|May 2015||JP Morgan||Initiates Coverage on||Overweight|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.