UBS Maintains a 'Sell' on ConocoPhillips (COP); Revisions From Investor Update

UBS maintains a 'Sell' on ConocoPhillips (NYSE: COP) price target raised from $60 to $64.

UBS analyst says, "We note four revisions to targets: 1) raised both ‘12 asset sales & share repurchases to $10bn from $5-10bn; 2) adjusted production guidance to 1.55 MMBoed (including asset sales) from 1.60 MMBoed ex asset sales (effectively no change); 3) raised E&D capex by $0.5bn to $14.5bn; 4) raised F&D to $20/Boe from $16-$18/Boe (implies $2bn increase in capex). It maintained expectations of 3-5%/annum LT prod’n growth & R&M capacity of 2.0 MMBbld by YE12."

UBS also feels that there will be several downward valuation re-ratings as the spin-off date approaches, expecting analysts to value ConocoPhillips on a SOTP basis. UBS did raise FY12 EPS estimate from $8.58 to $8.73.

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 $77.56 yesterday.

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