Occidental Petroleum "buy," target price raised

05.06.07 - UBS

NEW YORK, June 5 (newratings.com) - Analysts at UBS maintain their "buy" rating on Occidental Petroleum (OXY). The target price has been raised from $64 to $68.

In a research note published this morning, the analysts mention that the company continues to express its optimism regarding the ability of its present portfolio to generate annual production growth of 7%-9% until 2010-end, aided by the Mukhaizna and Dolphin projects. Hence, Occidental Petroleum?s ROCE is expected to improve going ahead, since Middle East is the primary growth driver, the analysts say. The company is well positioned to win two additional development projects beyond 2007.