BofA Lowers Occidental Petroleum Target to $44 Amid Shifting Energy Outlook

Bank of America has adjusted its price target for Occidental Petroleum (OXY) to $44, down from a previous estimate, signaling a shift toward a more cautious investment outlook. The move comes amid evolving market dynamics in the oil and gas sector, including fluctuating crude prices and shifting capital allocation strategies across energy firms. While OXY remains a key player in U.S. shale production and carbon capture initiatives, the revised target reflects concerns over near-term profitability and capital efficiency. The $44 target implies a potential 10% downside from recent trading levels, placing pressure on investor sentiment. This adjustment follows broader skepticism toward energy stocks that have seen gains in 2025, particularly those reliant on commodity price cycles. Despite OXY’s strong cash flow generation and expected production growth in the Permian Basin, analysts are weighing potential headwinds from regulatory uncertainty and elevated industry competition. The change impacts traders and institutional investors monitoring OXY’s valuation relative to peers like ExxonMobil (XOM) and Chevron (CVX). With OXY’s market cap exceeding $100 billion, any shift in analyst positioning can influence trading volume and portfolio allocations. The updated target is consistent with a broader sector-wide reassessment, where elevated valuations are being reevaluated against macroeconomic risks and energy transition pressures.