| BofA Adds ConocoPhillips To US1 List | |
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ConocoPhillips (NYSE: COP) shares are down 22 percent since April 21, even after recording a small recovery so far in October.
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BofA Merrill Lynch’s Doug Leggate maintained a Buy rating on the company, while raising the price target from $74 to $77.
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In view of ConocoPhillips’ disposals, growth and capital flexibility, the company has been added to the US1 list, Leggate mentioned.
Although ConocoPhillips is not “the highest beta name in the space,” it does have sustainable dividend, an advantaged capital cycle and option value from portfolio restructuring, analyst Doug Leggate said.
The combination of these differentiates ConocoPhillips in the face of “what looks increasingly like a bottoming process of this oil cycle.” The company has been added to the BofAML US1 list.
ConocoPhillips stands apart from its peers on account of stock-specific catalysts. Leggate believes that material asset sales could reach $8bn-$10bn, which constitutes about 15 percent of the company’s current market cap, “but with unique leverage to an oil recovery and the highest dividend of the US oils that pays investors to wait.”
Leggate expects ConocoPhillips’ capital flexibility to hit an inflection point in 2016, with new projects commencing at a time when spending declines 20 percent from the run rate of $11 billion in 2015.
In the report BofA Merrill Lynch noted, “Together we believe a step change in long life production kick starts another round of portfolio hi-grading, including a wholesale exit from deep water exploration that our estimates suggest can realize $3bn from undeveloped resource value but ultimately lowers exposure to another round of long-dated spending commitments.”
Leggate believes that while ConocoPhillips’ stock has “conservative exposure to an oil recovery,” the company offers a peer leading dividend yield.
Latest Ratings for COP
Date | Firm | Action | From | To |
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Oct 2015 | Barclays | Maintains | | Overweight | Sep 2015 | Credit Suisse | Maintains | | Neutral | Aug 2015 | Bernstein | Initiates Coverage on | | Outperform |
View More Analyst Ratings for COP
View the Latest Analyst Ratings
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ConocoPhillips
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CODE : COP |
ISIN : US20825C1045 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
ConocoPhillips is a producing company based in United states of america. ConocoPhillips is listed in Germany and in United States of America. Its market capitalisation is US$ 127.9 billions as of today (€ 114.9 billions). Its stock quote reached its lowest recent point on December 31, 1991 at US$ 10.94, and its highest recent level on September 18, 2024 at US$ 108.62. ConocoPhillips has 1 177 107 000 shares outstanding. |