Evercore ISI upgraded Occidental Petroleum (OXY) stocks to 'Outperform' from 'In Line' on Wednesday and raised the price target to $65 from $58. The upgrade reflects the company's stronger balance sheet and improved capital efficiency, according to analyst Stephen Richardson. The new target represents approximately 25% upside potential from the stock's closing price on Tuesday. The upgrade comes as oil prices rose Wednesday following intensified geopolitical tensions in the Middle East, with President Donald Trump declaring the ceasefire with Iran over after attacks on commercial ships in the Strait of Hormuz.
Evercore ISI Upgrades OXY Stocks to Outperform With $65 Price Target
Evercore ISI analyst Stephen Richardson upgraded Occidental Petroleum stocks to 'Outperform' from 'In Line' and raised the price target to $65 from $58 on Wednesday. The firm cited a stronger balance sheet and improved capital efficiency as reasons for the upgrade, according to The Fly.
The $65 price target is lower than the highs reached by the stock in 2026. In late March, OXY stocks surpassed $67 for the first time since May 2024 but failed to hold the level.
Richardson stated the upgrade is not based on faster growth. Evercore expects Occidental's free cash flow per share to grow about 8% annually through 2030 at a flat $75 West Texas Intermediate (WTI) price. This growth rate is slower than several peers, including Diamondback (FANG), ConocoPhillips (COP), and Chevron (CVX).
The analyst believes the stock is undervalued, with investors not fully recognizing the company's lasting efficiency improvements and stronger balance sheet. Evercore also expects the company to resume share buybacks starting in the second half of 2028, driven by increased free cash flow from lower well costs and reduced maintenance spending.
OXY shares were up more than 3% in early trading on Wednesday. The stock has gained 24% so far this year.
Oil Prices Rise 5% After Trump Declares Iran Ceasefire Over
Oil prices surged on Wednesday as geopolitical tensions in the Middle East intensified. President Donald Trump said the ceasefire with Iran was over after Iran attacked three commercial ships in the Strait of Hormuz. The U.S. revoked a sanctions waiver for limited Iranian oil sales and carried out a series of strikes against Iran late Tuesday.
Brent oil futures for September 2026 deliveries climbed 5% to $77.8 per barrel. West Texas Intermediate Crude futures for August 2026 deliveries rose 4.7% to $73.7 per barrel.
Since the U.S.-Israeli strikes on Iran began on Feb. 28, 2026, OXY shares have shed more than 6%, largely in line with peers CVX and COP. Retail sentiment surrounding OXY on Stocktwits turned 'bullish' from 'neutral' a day earlier, amid 'high' message volumes.
FAQ
Why did Evercore ISI upgrade OXY stocks to Outperform?
Evercore ISI upgraded Occidental Petroleum stocks to 'Outperform' from 'In Line' on Wednesday, citing a stronger balance sheet and improved capital efficiency. Analyst Stephen Richardson believes the stock is undervalued, with investors not fully recognizing the company's lasting efficiency improvements.
What is Evercore's price target for OXY stocks?
Evercore ISI raised the price target for Occidental Petroleum stocks to $65 from $58. The new target represents approximately 25% upside potential from the stock's closing price on Tuesday.
How did oil prices react to the Iran ceasefire ending?
Oil prices surged on Wednesday after President Donald Trump declared the Iran ceasefire over. Brent oil futures for September 2026 deliveries climbed 5% to $77.8 per barrel, while West Texas Intermediate Crude futures for August 2026 deliveries rose 4.7% to $73.7 per barrel.
