The analyst firm raised its price target for ConocoPhillips to $85 from $80. Analyst Fadel Gheit said the increase reflects the company's improving outlook on stronger financial and operating results.
"COP at last week's analyst day reiterated its value proposition of 3-5% CAGR for both production and margins, by allocating 95% of its $16B annual CAPEX in 2014-17 on projects with >$30/boe margin, while maintaining a dividend yield above its US peers and strong financial flexibility," Gheit wrote. "COP is trading at lower P/E and P/CF multiples relative to its E&P peers and at a significant discount on implied reserve value (IRV). With higher production growth than the majors and higher dividend yield and ROACE and a lower valuation than E&P peers, COP offers an alternative to both groups."
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Separately, TheStreet Ratings team rates CONOCOPHILLIPS as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONOCOPHILLIPS (COP) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."