Citi: Occidental Petroleum (OXY) Upside Priced Into Stock

Citi Investment Research & Analysis analyst Faisel Khan maintained his Hold rating for shares of Occidental Petroleum Corporation (NYSE: OXY), with a price target of $88 per share.

Khan said that despite Occidental Petroleum Corporation's positive operational momentum, most of the stock's upside potential had already been priced into the shares.

The Citi Investment Research & Analysis analyst wrote, "we expect management to maintain its production guidance for 2010, reaffirming its previously state range of 750-770mboe/d, vs our estimate of ~755mboe/d. OXY’s long-term production growth guidance is between 5-8% p.a., which we believe to be attainable. Near-term growth is fueled in the US by Kern, EOR activity in the Permian, and internationally by ramp-ups at Mukhaizna, Bahrain and at Habiba in Oman. In the longer term, Iraq and Argentina are on the radar screen. While we do not rule out some growth supported by acquisitions in the coming years, we will look for a much needed deep dive on OXY’s exploration program on Wednesday."