Research Alert: CFRA Keeps Hold Opinion On Shares Of Occidental Petroleum
02:50 PM EDT, 05/11/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price of $28, cut $2, reflects a 3.5x multiple of price to projected '21 operating cash flow, in line with the E&P peer group average. We narrow our '21 loss per share by $0.35 to $0.95, but widen the projected loss per share in '22 by $0.66 to $1.35. OXY posts a Q1 operating loss per share of $0.15, vs. a loss per share of $0.52, $0.18 narrower than the consensus view. OXY's free cash flow in Q1 was a robust $1.6 billion, the highest level in an individual quarter in a decade, and chemicals segment performance was strong as well, helped by improved margins. OXY has done a good job reducing near-term debt, and progress towards its goals for non-core asset sales has been commendable as well. We think OXY has benefited tremendously from higher crude oil prices, but we also remain wary for a possible pullback to the mid-$50/barrel range, especially if the Covid surge in India were to spread to other major crude importers.