Conocophillips (COP – Research Report), the Energy sector company, was revisited by a Wall Street analyst on May 6. Analyst Suvro Sarkar from DBS reiterated a Buy rating on the stock and has a $140.00 price target.
Suvro Sarkar has given his Buy rating due to a combination of factors that indicate a strong performance and growth potential for ConocoPhillips (COP). The company has demonstrated a solid production increase, marked by a 5% year-over-year growth, and is expected to sustain this momentum with a projected 5-6% growth in the following fiscal year. Sarkar notes the strategic business acquisitions, such as Concho Resources and Shell’s Permian assets, which have bolstered COP’s presence in the prolific Permian Basin, enhancing the company’s low-cost portfolio. Additionally, COP’s expansion in oil and LNG portfolios, including significant projects and international agreements, reflect its robust strategy and commitment to growth in key areas.
Furthermore, Sarkar highlights COP’s strong financial position and its shareholder-friendly practices, with a commitment to return at least 30% of its cash from operations to shareholders. The company’s distribution of $11 billion to shareholders in the previous fiscal year underscores its ability to generate superior returns. Looking ahead, the anticipation of tight global oil market conditions and potential geopolitical catalysts suggests a favorable outlook for COP. While acknowledging risks related to market volatility and regulatory challenges, Sarkar’s target price of $140 is based on a forward P/BV multiple that captures the company’s potential amidst these dynamics.
In another report released on May 6, Barclays also maintained a Buy rating on the stock with a $158.00 price target.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of COP in relation to earlier this year.
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Conocophillips (COP) Company Description:
ConocoPhillips is a global oil and gas company. It engages in exploration, production, transportation and marketing of crude oil and natural gas. Its portfolio includes conventional assets in North America, Australia, Europe and Asia, as well as oil sand assets in Canada.
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