Shares of Occidental Petroleum Corporation (OXY), a significant holding in Warren Buffett’s Berkshire Hathaway portfolio, have reached a 2.5-year low. Despite Buffett’s increased stake, analysts have lowered their price targets for OXY, citing concerns about the company’s outlook.
Analyst Price Target Reductions:
- Citigroup: Cut its target from $65 to $62;
- Wolfe Research: Reduced its target from $83 to $82;
- Susquehanna: Lowered its target from $81 to $78.
However, a technical analysis of the chart suggests that OXY shares may be oversold and undervalued. The price is approaching the lower boundary of an upward channel, which could provide strong support and potentially lead to a bullish reversal. Additionally, the RSI indicator is at levels last seen during the market panic of spring 2020.
While the bearish sentiment surrounding OXY is prevalent, a contrarian perspective might suggest that the current downturn could present a buying opportunity for investors seeking undervalued assets with potential for a rebound.
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