Wells Fargo reported on Friday that they have initiated coverage of oil and gas producer, Occidental Petroleum Corporation(OXY).
The firm reported that they have begun coverage of the company with a “Market Perform” rating, and a price target range of $75 to $83. This price target suggests up to an 8% increase from the stock’s current price of $76.26.
An analyst from the firm commented, “we have initiated coverage of Occidental Petroleum Corp. (OXY) with a Market Perform rating and a valuation range of $75-$83. Our rating reflects our view that achieving growth in the face of cost-control efforts will be difficult to achieve. Occidental is also pursuing an aggressive growth-oriented capital expenditure effort throughout 2013 but with little near-term payoff that may try investors’ patience. We value Occidental on a P/E basis of 10-11x our 2014 EPS estimate of $7.50. This approach is consistent with peer valuations.”
Occidental Petroleum shares were mostly flat during premarket trading Friday. The stock is down -18.61% YTD.
The Bottom Line
Shares of Occidental Petroleum (OXY) have a 2.83% dividend yield, based on last night’s closing stock price of $76.26. The stock has technical support in the $70-$72 price area. If the shares can firm up, we see overhead resistance around the $80-$81 price levels.
Occidental Petroleum Corporation(OXY)is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
FREE Dividend Stock Newsletter
Get the Dividend.com email newsletter to receive:
- A free copy of our acclaimed report, 5 Rules of Winning Dividend Stock Investing
- Free daily investing tips and picks from Dividend.com CEO Paul Rubillo
- Tons of great market analysis and recommendations