Deutsche Bank Upgrades OXY To Buy, Raises PT To $120

Deutsche Bank has upgraded its rating on Occidental Petroleum OXY from Hold to Buy and has raised its price target from $110 to $120, with a potential turnaround coming for the company as Q1 results are released this Thursday. According to Deutsche Bank, “Oxy's Q1 results on Thursday should be solid, and oil is now nearly $20/bbl higher for Q2. Even if we see a fourth sequential decline in California volumes, the company should highlight that performance will show sustained improvements from here. With the loss of Libya priced in, Oxy will have a lower base to grow from and should return to its 5%-8% trajectory by 2H. Although Ray Irani's $76m of pay for 2010 will be a PR issue at the AGM in 10 days, that meeting will confirm Chazen as CEO; with restructured pay policies. Upgrade to BUY, $120 PT.” OXY closed yesterday at $100.39.