Dahlman Rose reported on Tuesday that they have begun coverage
of oil and gas producer, Occidental Petroleum Corporation(
The firm has initiated coverage of OXY with a "Buy" rating and a
price target of $86. This price target suggests a 12% increase from
the stock's current price of $75.35.
An analyst from the firm commented, "OXY shares have
underperformed the sector by roughly 20% over the past 12 months,
reflecting disappointing operating/financial results versus high
expectations, among other factors. We believe sentiments are
currently very low - providing an opportune time for longterm
investors to accumulate shares. For a large global company, OXY
offers above-average oil/gas production growth (5-8% per year LT
target), top-quartile ROCE (2011 ROCE 17.1%), a deep and quality
asset portfolio (reserve life 11.9 years with significant resource
upside in the US and the Middle East), and a management team
focused on cash distribution (last ten year dividend growth CAGR
was 15.8% per year)."
Occidental Petroleum shares were mostly flat during premarket
trading Tuesday. The stock is down -20% YTD.
The Bottom Line
Shares of Occidental Petroleum (
) have a 2.87% dividend yield, based on last night's closing stock
price of $75.35. The stock has technical support in the $70-$72
price area. If the stock can firm up, we see overhead resistance
around the $79-$81 price levels.
Occidental Petroleum Corporation(
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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, as well as a detailed explanation of
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