Conocophillips Receives a Buy from Barclays

By Carrie Williams

Barclays analyst Paul Cheng reiterated a Buy rating on Conocophillips (NYSE: COP) today and set a price target of $60. The company’s shares opened today at $43.63.

Cheng noted:

“We reiterate our OW rating and believe the Analyst Day could potentially serve as a catalyst to trigger the long-awaited positive rerating process. We expect COP will provide a clear roadmap for the usage and priorities of their free positive cash flow over the next 12-24 months. This should help clarify the company’s value proposition and eliminate some investors’ uncertainties. We also think COP will highlight the significant scale and the strong underlying economics of their underappreciated unconventional oil and mid-cycle brownfield conventional opportunities.”

According to, Cheng is a 5-star analyst with an average return of 5.4% and a 62.3% success rate. Cheng covers the Basic Materials sector, focusing on stocks such as Petrobras Argentina S.A., Imperial Oil Limited, and Petroleo Brasileiro.

Currently, the analyst consensus on Conocophillips is Moderate Buy and the average price target is $53.33, representing a 22.2% upside.

In a report issued on October 24, Wolfe Research also upgraded the stock to Buy with a $50 price target.

Based on Conocophillips’ latest earnings report from June 30, the company posted quarterly revenue of $5.5B and quarterly net profit of -$1.07B. In comparison, last year the company earned revenue of $7.28B and had a net profit of -$1.07B.

Based on the recent corporate insider activity of 19 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of COP in relation to earlier this year. Most recently, in August 2016, Ellen Desanctis, the Vice President of COP bought 5,000 shares for a total of $202,500.

ConocoPhillips is an exploration company. The company explores, produces, transports and markets crude oil, bitumen, natural gas, natural gas liquids and liquefied natural gas on a worldwide basis. It operates through six segments: Alaska, Lower 48, Canada, Europe and North Africa, Asia Pacific and Middle East, and Other International. The Alaska’s segment is the largest producer and one of the largest owners of state and federal exploration leases. The Lower 48 segment has high-quality positions in the North American unconventionals. The company’s Canadian operations are comprised primarily of natural gas fields in western Canada and oil sands projects in northeastern Alberta. ConocoPhillips has operated in Europe for more than 40 years, with significant developments in the U.K. an Norwegian sectors of the North Sea. The company’s Asia Pacific and Middle East operations consist of producing fields in China, Indonesia, Malaysia, Qatar, Australia and Timor-Leste. The Other International segment covers a balanced, global portfolio of high-quality conventional and unconventional exploration opportunities. ConocoPhillips was founded on August 30, 2002 and is headquartered in Houston, TX.