ConocoPhillips Upgraded to Overweight by Wells Fargo
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Should l Buy COP?
Source: seekingalpha
ConocoPhillips (COP) saw a price increase of 5.02% as it crossed above its 5-day SMA, indicating positive momentum despite broader market declines.
The stock's rise follows an upgrade from Wells Fargo, which raised its rating from Equal Weight to Overweight and set a new price target of $132. The upgrade is based on expectations of significant dividend growth potential, with forecasts indicating over $6 in cumulative dividend capacity growth from 2026 to 2029. Additionally, the anticipated startup of the Willow project in 2029 is expected to enhance free cash flow significantly, contributing approximately $4 billion in net change in the first year at $65 Brent prices.
This upgrade reflects a strong outlook for ConocoPhillips, positioning it favorably in a challenging market environment, especially as it continues to pursue organic growth through various projects, including Qatar LNG and Port Arthur LNG.
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Analyst Views on COP
Wall Street analysts forecast COP stock price to fall
19 Analyst Rating
15 Buy
3 Hold
1 Sell
Moderate Buy
Current: 117.030
Low
98.00
Averages
115.67
High
133.00
Current: 117.030
Low
98.00
Averages
115.67
High
133.00
About COP
ConocoPhillips is an exploration and production company. Its Alaska segment primarily explores for, produces, transports and markets crude oil, natural gas and NGLs. The Lower 48 segment consists of operations located in the 48 contiguous states in the United States and the Gulf of Mexico. Canadian operations consist of the Surmont oil sands development in Alberta, the liquids-rich Montney unconventional play in British Columbia and commercial operations. The Europe, Middle East and North Africa segment consists of operations principally located in the Norwegian sector of the North Sea, the Norwegian Sea, Qatar, Libya, Equatorial Guinea and commercial and terminalling operations in the United Kingdom. Asia Pacific segment has exploration and production operations in China, Malaysia, Australia and commercial operations in China, Singapore and Japan. Other International segment includes interests in Colombia as well as contingencies associated with prior operations in other countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Risks and Defensive Strategy: Given the potential for significant oil price fluctuations due to the Middle East crisis, the diversified business models of the State Street Energy Select SPDR ETF provide a relatively safe investment option, particularly in the event of declining oil prices.
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- Shipping Traffic Disruption: Since the U.S. and Israel launched airstrikes on Iran on February 28, shipping traffic through the Strait of Hormuz has nearly ground to a halt, indicating a significant increase in security risks for this strategic waterway.
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- Global Energy Supply Risks: The Strait of Hormuz is a critical passage for approximately 20% of global oil and gas shipments, and the current tensions could severely impact global energy supplies, particularly in the context of ongoing conflicts.
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- U.S. Military Actions: The U.S. Central Command confirmed the sinking of several Iranian ships, including 16 minelayers, on Tuesday, signaling an increased military presence in the Strait of Hormuz that could escalate regional tensions and impact global oil prices and supply chains.
- Semiconductor Industry Pressure: Analysts warned that the ongoing conflict in the Middle East could hinder access to critical materials for the semiconductor industry, while rising energy costs may suppress chip demand, leading to decreased investor confidence in related stocks.
- Oracle Earnings Boost: Oracle reported an earnings beat and issued strong guidance, with its stock rising nearly 10% in after-hours trading, alleviating investor concerns over its substantial debt load and showcasing its ongoing investment potential in the artificial intelligence sector.
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- Escalating U.S. Military Actions: U.S. Defense Secretary warned of the most intense strikes on Iran, with Central Command confirming the sinking of several Iranian ships, including 16 mine layers, indicating a significant increase in U.S. military presence in the region, which could impact global oil prices and market sentiment.
- Oil Price Volatility: Asia-Pacific markets traded higher as global oil prices softened, with G7 discussions on using emergency crude reserves to ease supply constraints, highlighting international efforts to stabilize oil prices, which may influence future market trends.
- Focus on U.S. Inflation Data: U.S. stock futures hovered near flat ahead of key consumer inflation data, with economists expecting a 2.4% year-over-year rise in CPI, which will provide clearer insights into the strength of the U.S. economy and influence investor decisions.
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