UPDATE: Morgan Stanley Upgrades Occidental Petroleum

In a note released Monday, Morgan Stanley analyst Evan Calio issued a note in which he upgraded shares of Occidental Petroleum (NYSE: OXY) from Equal-weight to Overweight and raised the price target from $110 to $120.

Calio stated, "We believe Occidental Petroleum's restructuring will unfold in the next 12 months driving upside to growth estimates and value." He also noted that Occidental is now his top Major pick, replacing Chevron.

Calio pointed to at least $15 billion in low-risk asset sales and accretive sales as the drivers of upside and said the company should support an "outsized" buyback of up to 20 percent of outstanding shares.