‘Buy’ Occidental and Murphy Oil: Piper Sandler Bangs the Drum on OXY and MUR Stocks amid Rising Oil Prices

Oil prices have climbed in recent days as tensions in the Middle East raise concerns about supply disruptions. With crude prices climbing, top Piper Sandler analyst Mark Lear turned more bullish on two energy producers — Occidental Petroleum OXY +4.63% ▲ and Murphy Oil Corporation MUR +4.26% ▲ — upgrading both stocks to Overweight and raising their price targets.

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The analyst believes both companies offer strong leverage to higher oil prices and could benefit if crude remains elevated.

**Why Piper Sandler Turned Bullish on Occidental OXY +4.63% ▲ **

Lear upgraded Occidental to Overweight from Neutral and lifted his price target to $66 from $54, indicating 19% upside from current levels. The analyst said Occidental remains one of the strongest operators in the Delaware Basin, a key U.S. oil region. Even though operating performance softened slightly in 2025, the company continues to deliver solid production results.

The analyst pointed to the company’s 2026 outlook, which shows stronger capital efficiency. Occidental now expects to spend about $800 million less in capital while producing roughly the same level of oil and gas. While some investors questioned whether the savings could last, the company said the gains are sustainable, and Piper Sandler does not see this as a near-term risk for the stock.

Looking ahead, Lear believes the stock has strong upside if oil prices continue to rise, since Occidental’s earnings are highly tied to crude prices.

Piper Sandler Sees 21% Upside in** Murphy Oil MUR +4.26% ▲ **

Lear also upgraded Murphy Oil to Overweight from Neutral and raised his price target to $41 from $33, suggesting 21% upside from current levels. The analyst had previously downgraded the stock after the company’s third-quarter 2025 results, when investors were closely watching exploration drilling in Cote d’Ivoire. The results from that project disappointed, and the company’s 2026 guidance also came in below expectations, which weighed on the stock.

Despite that setback, Lear believes Murphy has strong operating leverage. This means the company’s earnings could rise faster if oil prices move higher.

Looking ahead, Lear pointed to a potential catalyst in Vietnam, where Murphy is developing the Hai Su Vang (HSV) project. Further appraisal work expected in the first half of 2026 could help investors better understand the size of the resource and may support the stock.

What Wall Street Says About OXY and Murphy Oil

Turning to Wall Street, Murphy Oil and Occidental both currently carry a Hold consensus rating from analysts. Murphy Oil has an average price target of $30.50, which suggests about 10% downside from current levels.

Meanwhile, Occidental’s average price target is $52.00, implying roughly 6% downside from its current price. This suggests OXY stock has slightly less downside risk compared with Murphy Oil based on current analyst estimates.

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