CVX - Occidental Petroleum raised Canadian Natural cut in JPM oil ratings shuffle

J.P. Morgan issues two ratings changes in its coverage of North American oil majors, upgrading Occidental Petroleum (OXY -1.3%) to Neutral from Underweight with a $39 price target while cutting Canadian Natural Resources (CNQ -1.7%) to Neutral from Overweight with a $66 target. Occidental "has shown solid execution throughout the COVID-19 downturn, managing a fairly stable production profile at minimal levels of capex," JPM's Phil Gresh writes. With net debt set to hit its $25B leverage target in early 2022, "OXY is positioned to return a modest amount of incremental capital back to shareholders," likely in the form of a higher dividend. Canadian Natural Resources has shown "solid execution" in 2021, but Gresh believes the stock's valuation is now more in line with Canadian peers on a longer-term basis. Gresh thinks CNQ is more likely to allocate additional excess cash to growth and M&A opportunities, and "we wonder if the company

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Occidental Petroleum raised, Canadian Natural cut in JPM oil ratings shuffle