NewsOccidental Petroleum "outperform," target price reduced
26.10.07 - Credit Suisse
NEW YORK, October 26 (newratings.com) - Analyst J Wolf of Credit Suisse maintains his "outperform" rating on Occidental Petroleum (OXY), while reducing his estimates for the company. The target price has been reduced from $74 to $73.
In a research note published yesterday, the analyst mentions that the company has reported its adjusted 3Q EPS ahead of the consensus and the estimates mainly due to a lower-than-expected tax rate. The analyst says, however, that Occidental Petroleum?s quarterly performance was negatively impacted by a rise in costs and weaker production levels, a trend that is likely to continue in the near term. The company?s growth would be driven by the ability to secure new contracts, Credit Suisse believes. The EPS estimate for FY08 has been reduced from $5.35 to $5.06.