Barclays raises Occidental Petroleum’s rating amid debt reduction potential from surging oil prices linked to geopolitical tensions.
Barclays upgraded Occidental Petroleum Corporation (NYSE:OXY) to Overweight from Equal Weight and increased its price target to $72 from $59. The move reflects expectations that rising oil prices, driven by the Iran conflict, will help the company manage its debt and fund equity obligations by 2027.
Occidental’s shares have risen 19% over the past year and 17% year-to-date. Berkshire Hathaway holds a $17.2 billion stake in OXY, up from a $332 million position in Q3 2019, when shares traded at an average of $47.28. The stock later dropped to $15.75 in Q2 2020 before recovering as Berkshire expanded its holdings to 136 million shares by Q1 2022.
The upgrade follows a broader trend of oil stocks gaining favor amid geopolitical risks and supply constraints. Barclays highlighted OXY’s potential to benefit from sustained high oil prices, though risks remain tied to debt levels and market volatility.