Oppenheimer Raises Price Target For ConocoPhillips
In a note dated June 5, Oppenheimer analyst Robert Du Boff raised the price target of ConocoPhillips (NYSE: COP) from $85 to $95 citing higher margins.
Further, Du Boff noted that if the company reaches a settlement with Venezuela, it could give the company's valuation another 10 percent boost.
Du Boff's "key points" Included:
- First quarter 2014 adjusted earnings of $2.25 billion or $1.81 per share vs. consensus of $1.56 per share. This marks an increase of 28 percent year-over-year and 29 percent sequentially.
- Production increased three percent year-over-year after being adjusted for disposition and downtime, driven by U.S. onshore, oil sands and other major projects.
- Du Boff says the company is looking to invest 95 percent of its capital expenditures into production over the next four years and is targeting a three to five percent CAGR.
Du Boff concluded with the following estimates:
- Operating cash flow of $18.2 billion and $19.5 billion, respectively, for 2014 and 2015.
- CapEx of $16.7 billion and $ 16.3 billion, respectively.
- $3.4 billion in annual dividends.
- Free cash flow deficits of $1.9 billion and 175 million, respectively.
Latest Ratings for COP
|Sep 2014||Bank of America||Upgrades||Underperform||Neutral|
|Aug 2014||Simmons & Co.||Upgrades||Neutral||Overweight|
|Aug 2014||Argus Research||Maintains||Buy|
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