UBS Maintains a 'Sell' on ConocoPhillips (COP); Prepping for Phillips 66 Spinoff

UBS maintains a 'Sell' on ConocoPhillips (NYSE: COP) price target lowered from $64 to $62.

Analyst, William A. Featherston, said, "We expect COP (E&P) to trade at a discount due to 1) below avg prod’n growth; 2) downward re-valuation due to investor focus to cash flow multiples from artificially depressed P/E multiples; 3) low organic free cash flow limiting future buybacks & potential risk to dividend/growth at lower oil prices. Meanwhile, we expect PSX to trade at a premium to independent refiners due to its above average exposure to chemical & midstream businesses w/ higher ROCE/growth/valuation."

NOTE - COP will spin-off PSX and shareholders will receive 1 PSX for every 2 COP owned. 'When-issued' begins April 12, and Common stock on May 1.

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 $75.05 yesterday.

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