Market Overview

Oppenheimer Raises Price Target For ConocoPhillips

Related COP
Bank Of America Downgrades ConocoPhillips, Ups Chevron Corporation
Benzinga's Top Upgrades
Energy Stocks Move Higher as Oil Spikes (Fox Business)

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
Sep 2014Bank of AmericaUpgradesUnderperformNeutral
Aug 2014Simmons & Co.UpgradesNeutralOverweight
Aug 2014Argus ResearchMaintainsBuy

View More Analyst Ratings for COP
View the Latest Analyst Ratings

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

 

Related Articles (COP)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters