Analyst Roger Read of Wells Fargo maintained a Buy rating on Conocophillips (COP – Research Report), retaining the price target of $132.00.
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Roger Read has given his Buy rating due to a combination of factors that highlight Conocophillips’ strong financial performance and strategic positioning. The company reported better-than-expected results in the fourth quarter of 2024, with adjusted earnings per share surpassing both Wells Fargo’s and consensus estimates. This was driven by higher production levels, especially in the United States, and a robust cash flow from operations. Additionally, Conocophillips completed its merger with Marathon Oil, contributing to anticipated synergies and improved operational efficiency.
Furthermore, the company demonstrated a commitment to shareholder returns, distributing over $2.85 billion in the fourth quarter through buybacks and dividends. The announcement of a significant capital return target for 2025 also signals confidence in its future cash flow generation. Despite a slight increase in capital expenditure guidance for 2025, the overall strategic initiatives, including asset divestitures and debt restructuring, support a positive outlook for the stock, considering the achievement of cost synergies and solid production guidance.
According to TipRanks, Read is a 4-star analyst with an average return of 4.9% and a 53.61% success rate. Read covers the Energy sector, focusing on stocks such as Conocophillips, Phillips 66, and Suncor Energy.
In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $138.00 price target.