ConocoPhillips (COP) PT Raised to $66 at Goldman Sachs After Resuming Buyback Program

Goldman Sachs analyst Neil Mehta raised the price target on ConocoPhillips (NYSE: COP) to $66.00 (from $65.00) after the company announced the resumption of share repurchases at an annualized level of $1.5 bn. This was below expectations of ~$2.2 bn of buybacks in 2021, but if oil prices remain supportive there is potential to meet the additional $1.5 bn.

The analyst reiterated a Buy rating, stating "We continue to believe COP offers an attractive shareholder return story within our US majors coverage given COP’s headroom for buybacks and substantial dividend growth into 2022 (+8% from 2021 levels). We still see COP trading at an $8 discount to Brent ($60 stock price vs. $68/bbl Brent price), wider than the historical spread between these two. Inside, we highlight details surrounding the 2021 buybacks, changes we made to our model following our 10-K review, and key areas of investor feedback following the stock’s recent rally (COP +49% YTD vs. S&P500 +4%)."

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