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Oppenheimer Raises Price Target For ConocoPhillips

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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

DateFirmActionFromTo
Mar 2015Goldman SachsInitiates Coverage onNeutral
Feb 2015CitigroupMaintainsBuy
Jan 2015JefferiesMaintainsHold

View More Analyst Ratings for COP
View the Latest Analyst Ratings

Posted-In: Oppenheimer Robert Du BoffAnalyst Color News Price Target Analyst Ratings

 

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