Occidental Petroleum stock has drawn renewed analyst attention as projections for the company’s fair value per share edged down slightly from $50.48 to $49.91. This adjustment comes at the same time as a decrease in the discount rate, from 7.56% to 7.25%, signaling shifting market sentiment following the OxyChem divestiture and rebalancing of the company’s portfolio. Stay tuned for more on how investors can navigate and stay informed about the evolving narrative around Occidental’s prospects.
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Recent analyst commentary on Occidental Petroleum presents a nuanced view of the company’s outlook, with a balance of cautious optimism and persistent reservations. Here is how leading research firms are interpreting Occidental’s current valuation, execution, and growth drivers.
🐂 Bullish Takeaways
Several analysts, including Roth Capital and BofA, have modestly increased their price targets following the announced divestiture of OxyChem. They cite the substantial cash proceeds and accelerated debt reduction, which improve Occidental’s financial flexibility and position to meet near-term leverage targets.
Barclays highlighted that the planned unit sale could speed up Occidental’s balance sheet normalization and free resources for enhanced cash returns. This points to improving capital management amid shifting industry dynamics.
Scotiabank raised its price target and noted that while estimates remain above consensus, the updated outlook still points to room for improvement. This reflects a disciplined approach to capital efficiency and ongoing portfolio rebalancing.
Melius Research initiated coverage with a Hold rating and a higher price target, referencing Occidental’s exposure to the sector’s transformative shifts driven by technology and power demand growth.
🐻 Bearish Takeaways
UBS and Piper Sandler both lowered their price targets, emphasizing that although the OxyChem sale aids debt reduction, it has been dilutive across key performance metrics. The remaining preferred equity could potentially constrain shareholder returns and make Occidental’s valuation less compelling relative to peers.
Some analysts, including Mizuho, flagged lingering valuation concerns and have kept Neutral ratings. They underlined that upside could already be priced in and highlighted near-term risks related to commodity price volatility and the pace of balance sheet repair.
Piper Sandler pointed out the secular uncertainties in oil and gas demand as well as potential headwinds from ongoing sector mergers and changing capital expenditure priorities.
Taken together, analyst sentiment reflects both an acknowledgment of Occidental’s improved financial trajectory following recent asset sales and a degree of caution regarding valuation and ongoing strategic risks. The consensus remains skewed toward neutrality, with increases and decreases in price targets closely tracking adjustments in earnings and market sentiment.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
NYSE:OXY Community Fair Values as at Nov 2025
Berkshire Hathaway is reportedly close to a $10 billion deal to buy Occidental Petroleum’s petrochemical business, according to the Wall Street Journal. This potential acquisition would represent a major strategic transaction between the two companies.
Sources familiar with the matter indicate that an agreement between Occidental Petroleum and Berkshire Hathaway for the sale of the OxyChem unit could be finalized within days. This development adds momentum to ongoing negotiations.
The Financial Times reports that Occidental is considering selling OxyChem for about $10 billion. This would mark the largest divestment in the company’s history and would significantly reshape Occidental’s asset portfolio and financial position.
Fair Value: The estimated fair value per share declined modestly from $50.48 to $49.91.
Discount Rate: The discount rate decreased slightly, shifting from 7.56% to 7.25%.
Revenue Growth: Projected revenue growth saw a notable increase, rising from 0.10% to 1.63%.
Net Profit Margin: The expected net profit margin fell significantly, moving from 11.53% to 7.76%.
Future P/E: The projected future price-to-earnings ratio rose considerably, from 22.7x to 31.6x.
Narratives are a smarter, more dynamic approach to investing that connect a company’s story, such as its strategies, challenges, and milestones, to future financial forecasts and fair values. On Simply Wall St’s Community page, millions of investors use Narratives to track how a company’s fair value compares to the market price and make investment decisions as new news or earnings emerge.
Read the original Occidental Petroleum Narrative to stay ahead of crucial updates:
Track how major asset sales and accelerated debt reduction are reshaping Occidental’s balance sheet and influencing future cash returns to shareholders.
See the impact of new investments in carbon capture and energy efficiency on the company’s long-term growth and profitability potential.
Understand the key risks, including oil price volatility, heavy capital commitments, and execution challenges, that could determine whether the bull or bear case prevails.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include OXY.
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