Market Overview

BofA Maintains Buy on Occidental as Inevitable Split-Up Approaches

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In a report published Monday, Bank of America Merrill analyst Doug Leggate confirmed Occidental Petroleum (NYSE: OXY) will definitely split into multiple parts.

After meeting with Occidental's CEO Steve Chazen for the third time in just a few weeks, Leggate believes the company will likely IPO its California unit. Leggate is not certain how Middle East will be monetized, but speculates the move could be through an IPO, a partial sale, or a full sale.

The BofA analyst called a buyback in the range of $15 to $20 billion "not only possible but likely."

Leggate reiterated his prior view Occidental could be worth at least $150 per share in a breakup.

In addition to the comments from Leggate, traders in Occidental shares are responding to a downgrade to Neutral by a UBS analyst.

The stock is down about 1 percent to $92.24 at last check.

Latest Ratings for OXY

DateFirmActionFromTo
Jan 2021MizuhoUpgradesNeutralBuy
Dec 2020Wells FargoUpgradesUnderweightEqual-Weight
Dec 2020Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for OXY
View the Latest Analyst Ratings

 

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Posted-In: Analyst Color News Dividends Buybacks Analyst Ratings

Latest Ratings

StockFirmActionPT
EYPTCantor FitzgeraldInitiates Coverage On22.0
TXNDeutsche BankMaintains170.0
BYDDeutsche BankMaintains56.0
MELIDeutsche BankMaintains2,200.0
ALVMizuhoMaintains104.0
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