TD Cowen Lowers Occidental Petroleum (OXY) PT to $68, Citing Issues

Occidental Petroleum's (OXY) shares dropped over 5% in premarket trading on Thursday after TD Cowen lowered its price target on the stock to $68 per share.

The firm cited concerns about the company's ability to meet its production targets and the potential for further weakness in oil prices.

Cowen analyst, Derrick Whitfield, said in a note to clients that he is "cautious on Occidental's ability to meet its production targets, as the company has a history of missing estimates."

Whitfield also noted that the recent weakness in oil prices is a concern, as it could pressure Occidental's margins.

"We believe that Occidental is a well-run company with a solid balance sheet," Whitfield said. "However, we are concerned about the company's ability to meet its production targets and the potential for further weakness in oil prices."

Occidental Petroleum is an American oil and gas exploration and production company. The company has operations in the United States, the Middle East, and North Africa.

OXY's shares have been under pressure in recent months due to concerns about the company's debt levels and its ability to meet its production targets.

Occidental Petroleum is scheduled to report its fourth-quarter earnings on February 23.

Analysts' Take

Following TD Cowen's downgrade, several other analysts have weighed in on Occidental Petroleum.

Wells Fargo analyst, Roger Read, maintained his "overweight" rating on OXY but lowered his price target from $75 to $70.

Read said that he is "still positive on Occidental's long-term prospects, but the near-term challenges are likely to weigh on the stock in the coming months."

Barclays analyst, Paul Cheng, downgraded Occidental Petroleum from "overweight" to "equal weight" and lowered his price target from $72 to $66.

Cheng said that he is "concerned about Occidental's ability to meet its production targets and the potential for further weakness in oil prices."