By Dhirendra Tripathi

Investing.com – Occidental Petroleum (NYSE:) stock traded 2% higher Wednesday, a day after Stifel upgraded it to ‘buy’ with a 12-month target of $84, more than 43% higher than the high of $58.52 so far in today’s session.

Stifel Analyst Michael Scialla thinks the stock is attractively-priced despite a record-breaking 120% increase in crude oil prices over the past year. This was due to a low-carbon business that has been undervalued.

Since Warren Buffett bought 13%, the stock has received a lot of attention.

“An emerging low carbon business centered around direct air capture is largely underappreciated, in our view, due to its reliance on voluntary and compliance offset markets for hard to abate emissions and the consensus opinion that it will generate low returns,” he wrote in the report, according to StreetInsider.

Scialla says investors might be surprised by the rate of offset market expansion, while improved oil recovery resources are expected to improve margins and impact direct air capture economies.

The stock should be supported by a rapid deleveraging balance sheet, and an share repurchase programme, he said.