Market Overview

Hot Energy Names: 1 Bull, 1 Bear And 1 Hold From Credit Suisse

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Whether you’re an oil bull, bear or somewhere in between, Credit Suisse analyst Edward Westlake has the perfect stock for you. In a series of new reports, Westlake comments on oil giants Exxon Mobil Corporation (NYSE: XOM), Anadarko Petroleum Corporation (NYSE: APC) and ConocoPhillips (NYSE: COP).

For oil bulls, Westlake recommends Outperform-rated Anadarko. He likes the company’s aggressive 50 percent capex cut and sees more than enough liquidity to cover near term debt maturities. Westlake raised his price target for the stock from $51 to $55.

For oil bears looking for a stock to short, Exxon could be a good candidate. Westlake says that the company is still “in the sweetspot on a number of different fronts,” but argues that the stock remains fully valued after its recent pullback. Credit Suisse maintains its Underperform rating on Exxon but Westlake raised his price target from $68 to $73.

Related Link: How Healthy Would Financial Markets Be Without Oil?

Finally, Westlake maintains his Neutral rating and $45 price target for ConocoPhillips. He likes the huge dividend yield the stock is paying and management’s commitment to maintain that dividend, but he questions how responsible the payout is and argues that the company would need $60/bbl oil to comfortably cover the cost of both the dividend and the company’s spending plans.

Disclosure: the author holds no position in the stocks mentioned.

Latest Ratings for XOM

Jan 2017UBSDowngradesNeutralSell
Jan 2017Wells FargoDowngradesOutperformMarket Perform
Dec 2016BMO CapitalInitiates Coverage OnMarket Perform

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Related Articles (APC + COP)

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