Replies to post #186 on Occidental Petroleum Corp (OXY)

[eFinanceMarkets]

Occidental Petroleum could tumble another 20%, Barclays says

Shares of Occidental Petroleum (OXY -2%), already a big underperformer relative to oil and gas peers, could drop another ~20%, Barclays analysts contend as they reiterate their Underweight rating while cutting the price target to $48 from $50.

Count the ways Barclays does not like OXY: Shares lagged the S&P E&P Index by ~10% over the past year, OXY’s production compared to capital deployed is expected to will shrink ~17% in 2016-17, and the stock's relative multiple has expanded, making it the most expensive company the firm covers as a ratio of eneterprise value to estimated 2018 cash flow.

While some would argue that OXY is not a pure E&P company, Barclays says it has traded much like an E&P company and estimates ~70% of its value comes from E&P assets, not far below the 80-85% the firm attributes to Anadarko Petroleum (APC -0.7%) or Devon Energy (DVN -0.4%) E&P assets.