California Resources downgraded to Neutral from Buy at BofA

BofA downgraded California Resources to Neutral from Buy with a price target of $60, down from $64. The firm has taken a defensive stance towards oil in 2024 and sees some risk that it may be more challenging for Saudi Arabia to stabilize the commodity price due to the combination of uncertain demand and non-OPEC growth, the analyst tells investors. The firm’s 2024 base case is for $80 Brent, but recognizing perpetual backwardation as “a new normal” its two-year forward long-term price deck drops to $75 Brent and $70 WTI from 2026, the analyst tells investors.