Goldman Sachs Raises Occidental Petroleum Target to $69
Goldman Sachs has upgraded Occidental Petroleum Corp. to a Buy rating and raised its price target to $69 as of October 1, 2026. Analyst Neil Mehta cited the company's enhanced oil recovery technologies and strong operational performance across its core assets. The price target was increased from $63, marking a 9.52% boost, and Occidental was added to Goldman's U.S. Conviction List. Shares closed at $55.32 on the previous market day and were quoted at EUR 51.64 on Germany's Lang & Schwarz platform on October 5, down 0.04% from the prior session.
The upgrade highlights Occidental's goal to achieve a $4.00 billion cash flow improvement by 2030, driven by advanced techniques designed to extend shale reserve lifespans and improve capital efficiency. Goldman Sachs also emphasized the company's progress in debt reduction and potential for future dividend growth. The revision follows strong second-quarter results, where Occidental reported adjusted earnings per share of $2.40, surpassing the Zacks consensus estimate of $1.92 by 25%.
Quarterly revenue rose 57.1% year-over-year to $8.33 billion, outperforming market expectations of $7.18 billion. Production reached 1.433 million barrels of oil equivalent per day, exceeding guidance. Occidental currently pays a 1.87% dividend yield, backed by a 33% payout ratio and a three-year compound annual growth rate of 22.7%. Insider trading data shows net purchases of $0.4 million over the past 12 months, including a purchase of 4,770 shares by President and CEO Richard A. Jackson for $249,852.
Institutional interest remains mixed, with 13 prominent investment gurus holding shares. During the second quarter, GQG Partners LLC liquidated its 18.3 million share position, while Sixth Street Partners Management Company and Qube Research & Technologies added 5.76 million and 5.58 million shares, respectively. The consensus price target among Wall Street analysts stands at $66.72, with target prices ranging from $57.00 to $75.00. Occidental Petroleum is scheduled to post its third-quarter 2026 earnings after the market close on November 9, 2026, followed by a conference call on November 10.