BofA analyst Kalei Akamine lowered the firm’s price target on ConocoPhillips (COP) to $138 from $145 and keeps a Buy rating on the shares. Non-OPEC supply growth outweighs global demand growth, leaving downside to the oil strip, the analyst tells investors. The firm’s house view calls for $60 WTI the next two years, which is a level that freezes new OPEC supply from the market, resulting in a growing supply overhang that may continue to grow in the absence of an acceleration in demand, adds the firm, which lowered it long-term oil price view to $65 WTI from $75. However, the firm believes AI and its derivatives are “a multi-year theme that dovetails with a fundamental reset in US gas” and it sees momentum around gas E&P’s that could shift valuations higher to $4.00 NYMEX, the analyst added.
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