ConocoPhillips (COP) Remains Goldman's Top Big Oil Pick Noting Shares Trade at a Discount to Brent

Goldman Sachs analyst Neil Mehta reiterated a Buy rating and $68.00 price target on ConocoPhillips (NYSE: COP) after the company reiterated its focus on shareholder returns and improving ROCE at its virtual analyst day.

The analyst stated "we see material improvement and robust capital returns at our above consensus oil price deck. While we acknowledge 2022+ capital spend guidance came in above our initial estimates, we also note COP’s production outlook came in above our initial estimates driving a largely neutral impact to our valuation. Key incremental takeaways from the event included (1) production outlook, project updates, and disposition commentary, (2) capital allocation commentary, including on capex and shareholder returns, (3) CXO synergy updates, and (4) ESG updates. Overall, we continue to see attractive upside to the stock at 15% total return and room for COP’s share price to appreciate given the stock’s dislocation vs Brent currently at ~$14, where we have historically seen COP trade at a ~$5 discount to Brent."

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 $60.90 yesterday.

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