Deutsche Bank Downgrades ConocoPhillips (COP) to Hold; Rotating Favored Cash Return Play to XOM

Deutsche Bank downgraded ConocoPhillips (NYSE: COP) from Buy to Hold.

Deutsche analyst said, "Post split we expect COP to temper buyback to squeeze its share reduction out until volume growth starts in Q2 2013. With cash return falling to 6.7% in 2013 (4.5% div, 2.2% buyback), we now target $80/share on lowered 2013 buyback forecast. Our conviction on the stock’s implied yield has been undermined by when-issued trading that implies a 4.7% yield rather than our 4% previous target. We look for a future return to the shrink to grow strategy, but for now that is off the table as new CEO Ryan Lance establishes his strategy."

NOTE - Deutsche Bank simultaneously upgraded ExxonMobil (NYSE: XOM) from Hold to Buy.

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 $74.26 yesterday.

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