Barclays on ConocoPhillips (COP): JV Sale a Positive, But Don't Expect Much Upside

August 23, 2012 3:14 PM EDT
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Price: $50.55 -0.08%

Rating Summary:
    14 Buy, 12 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 9
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Barclays maintains an 'Equalweight' on ConocoPhillips (NYSE: COP) price target of $62.00.

Analyst, Paul Y. Cheng, commented on the recent announcement that ConocoPhilips was selling its 40% stake in Russian joint venture NaryanMarNefteGaz (NMNG) to co-owner Lukoil (OTC: LUKOY) for $400 million.

Cheng said the sale makes strategic sense, citing the property was not part of the company's core operations. He lowers FY12 EPS estimate from $4.70 to $4.65 and FY13 from $5.15 to $5.10. However, he believes upside to shares is relatively limited until company management does a better job convincing the market that it can fund its dividend and capex program in a more mediocre oil price environment ($80/barrel or less)

For an analyst ratings summary and ratings history on ConocoPhillips click here. For more ratings news on ConocoPhillips click here.

Shares of ConocoPhillips closed at $56.68 yesterday.

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