The Dividend Daily

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.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.