Occidental Petroleum, the Energy sector company, was revisited by a Wall Street analyst yesterday. Analyst Josh Silverstein from UBS reiterated a Hold rating on the stock and has a $45.00 price target.
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Josh Silverstein has given his Hold rating due to a combination of factors surrounding Occidental Petroleum’s current financial and operational status. The recent divestiture of OXYChem, while contributing positively to debt reduction, is seen as having a dilutive effect on the company’s future free cash flow, particularly in 2026-2027. Although the operational performance in the Permian and Gulf of Mexico regions remains robust, the company is expected to maintain its current production levels without significant growth.
Additionally, while Occidental’s financial forecasts for the third quarter of 2025 are slightly above market expectations, the impact of weak gas pricing and the strategic allocation of capital expenditures remain concerns. The potential for share repurchases in 2026, along with the need to build cash reserves for future obligations, suggests a cautious approach to capital management. These factors, combined with the unchanged price target, underpin the Hold rating, indicating a balanced view of the company’s prospects.
According to TipRanks, Silverstein is a 4-star analyst with an average return of 4.9% and a 50.28% success rate. Silverstein covers the Energy sector, focusing on stocks such as Chevron, Occidental Petroleum, and Exxon Mobil.
In another report released yesterday, J.P. Morgan also reiterated a Hold rating on the stock with a $50.00 price target.