Bank of America Downgrades ConocoPhillips (COP) to Underperform with $102 Price Target
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Rating Downgrade: Bank of America downgraded ConocoPhillips (COP) from Neutral to Underperform with a price target of $102, citing its $53/bbl oil breakeven point as uncompetitive within the E&P sector.
- Cash Flow Forecast: BofA forecasts ConocoPhillips will generate $16.6 billion in operating cash flow and $5 billion in free cash flow, indicating the company cannot sustain its current capital return pace of approximately 45% of operating cash flow, which may impact shareholder returns.
- Shareholder Return Limitations: If returns are confined to cash flow generation, total shareholder returns would be around $5 billion, or approximately 30%, at the low end of management's target range, potentially leaving insufficient funds for buybacks to meet investor expectations.
- Competitor Performance: BofA named Ovintiv (OVV) as its top oil pick for 2026, supported by a disciplined capital allocation strategy in high-return core assets, which is expected to significantly enhance buyback capacity and establish a 100% cash-return framework.
Analyst Views on COP
Wall Street analysts forecast COP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COP is 112.38 USD with a low forecast of 100.00 USD and a high forecast of 120.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
13 Buy
3 Hold
0 Sell
Strong Buy
Current: 98.930
Low
100.00
Averages
112.38
High
120.00
Current: 98.930
Low
100.00
Averages
112.38
High
120.00
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.
