Luke Lango Issues Dire Warning

A $15.7 trillion tech melt could be triggered as soon as June 14th… Now is the time to prepare.

Tue, June 6 at 7:00PM ET

OXY Stock: Cowen Upgrades Occidental Petroleum as Buffett’s Buying Spree Continues

  • Berkshire Hathaway (BRK-A, BRK-B) CEO Warren Buffett reportedly bought more shares of Occidental Petroleum (OXY).
  • An analyst with TD Cowen also recently upgraded and raised his price target on OXY stock.
  • Shares of Occidental Petroleum are up about 3% today.
Person holding cellphone with logo of American company Occidental Petroleum Corp. (OXY) on screen in front of website. Focus on phone display. Unmodified photo.
Source: T. Schneider /

There’s no doubt about it: Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) CEO Warren Buffett really likes Occidental Petroleum (NYSE:OXY) stock. In fact, Berkshire recently added millions of shares to its position. Not only that, but a Wall Street analyst also lifted his rating and price target on OXY stock.

This is a double shot of positive news for anyone invested in Occidental. First and foremost, Buffett is a kingmaker in the world of equities. If Berkshire is buying an asset, you can bet that plenty of the CEO’s followers will buy it, too.

Buffett already bet big on Occidental Petroleum last year with a stake of around 20% in the energy company. However, apparently the Oracle of Omaha wasn’t finished building his position just yet.

According to a CNBC report, Berkshire Hathaway bought an “additional 3.7 million Occidental shares for $216 million on Monday and last Thursday.” This increased the company’s stake in OXY to a whopping 23.5%.

What’s Happening With OXY Stock?

You can probably guess what happened to the Occidental Petroleum share price when traders learned about Buffett’s new purchase. It jumped, of course. Shares are now gaining around 3% this morning.

That’s not the only positive development concerning Occidental Petroleum, however. TD Cowen analyst David Deckelbaum also upgraded OXY stock from “market perform” to “outperform” and raised his price target from $63 to $70 per share.

These two news items are actually related. Along with his upgrade and price target raise, Deckelbaum cited “captive buying support” from Berkshire.

That isn’t the only reason the analyst likes Occidental, though. Deckelbaum also noted the company’s “superior risk-reward balance of superior exposure to crude pricing” as well as favorable “capital structure shifts.” Additionally, the analyst pointed out its “well productivity” and “favorable free cash yield.”

So, Occidental Petroleum has at least two notable fans: Deckelbaum and, best of all, Buffett. Don’t be surprised, then, if investors continue to load up on OXY stock this week.

On the date of publication, David Moadel did not hold (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 Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Article printed from InvestorPlace Media,

©2023 InvestorPlace Media, LLC