Is OXY Stock a Buy as Buffett Dives In? Here’s What 3 Analysts Say About Occidental Petroleum.

One of the big movers in the market over the past week has been Occidental Petroleum (NYSE:OXY). Today, the price action for Occidental has not been as positive. At the time of writing, OXY stock is down nearly 3%. That said, the broader markets appear to be selling off in a big way today, as volatility once again picks up.

A magnifying glass zooms in on the Occidental Petroleum (OXY) website.
Source: Pavel Kapysh / Shutterstock.com

Today’s price action is certainly something many investors may not have seen coming. That is because OXY stock is up approximately 20% over the past five trading days.

Of course, surging oil prices have a lot to do with this increase. Today, West Texas Intermediate (WTI) crude oil traded as high as $130 per barrel, within 15% of its all-time high. Given these higher prices, it is expected that major producers such as Occidental could be positioned for a continued rally.

However, the recent Form 4 filing of Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is what has many investors excited. It was announced that Berkshire had taken a $5 billion stake in Occidental, which computes to more than 10% of the overall value of the company. Additionally, Berkshire continued buying on the way up, signaling to some investors that this rally may be far from over.

Let’s check in with what some of the other experts think of Occidental right now.

What Do Analysts Think of OXY Stock?

For reference, Occidental Petroleum currently trades at $55 per share.

  • MKM Partners analyst John Gerdes reiterated his “buy” rating on Occidental, with a $50 price target.
  • Susquehanna analyst Biju Perincheril posted an upgraded price target of $52 per share, also with a “buy” rating.
  • However, Scotiabank analyst Paul Cheng maintained the equivalent of a “hold” rating on OXY stock. He recently upgraded his price target to $45 per share.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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