Update shared on16 Sep 2025
Fair value Increased 0.69%Analysts modestly raised Occidental Petroleum’s price target to $51.00 as updated commodity forecasts reflect cautious optimism for gas demand amid sector-wide oil price volatility and industry leadership shifts, resulting in only a marginal upward fair value revision.
Analyst Commentary
- Analysts are recalibrating price targets to reflect updated commodity price outlooks, particularly adjusting for a more cautious stance on oil while maintaining a positive skew for gas prices over the next year.
- The acceleration of AI adoption is transforming power and energy markets, creating new potential winners but implying that Occidental may face tougher comparative dynamics as industry leadership shifts.
- Bullish analysts are backing their modest price target increases on Occidental with expectations of sustained long-term gas demand, particularly due to power generation needs and significant investments in data center infrastructure.
- Cautious positioning persists across the sector given continued oil price volatility, persistent high supplies, and inventory builds, which temper more aggressive upgrades for Occidental.
- Recent preference shifts among analysts favor large-cap, gas-focused E&Ps and more defensive oil equities over more aggressive oil pure-play exposures like Occidental.
What's in the News
- Occidental Petroleum provided Q3 2025 production guidance, expecting 1.42 million to 1.46 million BOE per day, indicating increased volumes across its main operating areas.
- Added to Russell Midcap Index and Russell Midcap Value Index.
- Added to Russell Midcap Value Benchmark.
- Dropped from Russell Top 200 Index, Russell Top 200 Value Index, and Russell Top 200 Value Benchmark.
Valuation Changes
Summary of Valuation Changes for Occidental Petroleum
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $50.65 to $51.00.
- The Consensus Revenue Growth forecasts for Occidental Petroleum has significantly risen from 2.2% per annum to 3.2% per annum.
- The Future P/E for Occidental Petroleum has fallen from 19.60x to 18.29x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.