Occidental Petro maintained Buy at two firms, but spinoff falls on first day

|About: Occidental Petroleum Corpor... (OXY)|By:, SA News Editor

Occidental Petroleum (OXY -3.5%) is reiterated with Buy ratings but lower price targets at BofA Merrill and Jefferies after completing the spinout of 80% of the equity in California Resources Corp. (CRC -21.2%)

BofA believes OXY has the defensive characteristics to complete its repositioning, starting with the CRC separation; implications for OXY start with removal of blackout restrictions to enable up to 15% of share buybacks and an accelerated pace of growth per share that remains competitive even at $70 oil.

Meanwhile, the first day of trading for CRC is not going well: The stock recently traded at ~$7.25 for a market cap of $2.25B but analysts estimated when the spinoff was announced in February that it could be worth as much as $19B.

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