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ConocoPhillips (COP) Stock Well on the Way to $70, Thinks Analyst

February 8, 2013 2:37 PM EST Send to a Friend
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Price: $74.39 +0.50%

Rating Summary:
    8 Buy, 11 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 10 | New: 7
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ConocoPhillips (NYSE: COP) is in the process of divesting $9.6 billion in assets this year, and analysts at Oppenheimer expect the company to successfully apply proceeds to help fund new projects and increased production.

"Divestiture proceeds should help fund current and new projects that will likely underpin 3%-5% annual production and margin growth targets over the next five years," said analyst Fadel Gheit. "COP expects production to bottom by mid-year as a result of divestitures, and then ramp up from new projects."

"We believe a successful implementation this growth strategy, coupled with the high dividend yield could lead to 20% multiple expansion and boost the stock above our price target. A favorable settlement regarding the confiscated oil and gas assets in Venezuela could also lift the stock closer to our price target," added Gheit.

Oppenheimer today reiterated an Outperform rating on ConocoPhillips and raised its price target to $70.00 (from $65.00).

For an analyst ratings summary and ratings history on ConocoPhillips (NYSE: COP) click here. For more ratings news on ConocoPhillips click here.

Shares of ConocoPhillips closed at $57.63 yesterday.




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