Occidental Petroleum (OXY) saw its stock plummet 5.60% in intraday trading on Tuesday, as several top Wall Street analysts reiterated their cautious outlook on the company. The sell-off came amid a flurry of analyst reports that largely maintained neutral ratings on the stock, despite some adjustments to price targets.
JPMorgan, Wells Fargo, and UBS were among the firms that reiterated their Hold ratings on Occidental. JPMorgan slightly raised its price target to $48 from $47, while Wells Fargo cut its target to $46 from $47. Mizuho Securities took a more optimistic view, raising its price target to $65 from $58, but still maintained a Neutral rating. The average price target among analysts polled by FactSet stands at $50.04.
The lukewarm analyst sentiment appears to be driven by operational and financial challenges facing Occidental. JPMorgan analyst Arun Jayaram expressed a cautious outlook in his report, highlighting potential headwinds for the company. The mixed signals from analysts, combined with the overall hold rating consensus, seem to have prompted investors to reassess their positions, leading to the significant drop in Occidental's stock price.
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