ConocoPhillips price target lowered to $113 from $115 at RBC Capital

Investing.com - RBC Capital has lowered its price target on ConocoPhillips (NYSE:COP) stock to $113.00 from $115.00 while maintaining an Outperform rating. According to InvestingPro data, analysts’ targets range from $100 to $141, with the company currently trading at an attractive P/E ratio of 12.1x and showing signs of undervaluation based on Fair Value analysis.

The firm projects earnings per share and cash flow per share slightly above ConocoPhillips’ own sensitivities, which imply $1.30 per share and $4.5 billion of cash flow.

RBC Capital expects second-quarter 2025 leverage to increase, driven by working capital headwinds, peak capital spending, and the absence of APLNG distributions.

The firm notes that ConocoPhillips is approaching its free cash flow pivot point, with major project spending expected to decrease significantly in the third quarter of 2025.

Key investor discussions currently center around shareholder return ratio and targeting, divestitures, capital expenditure to cash flow pivot point, and the pace of onshore L48 activity.

In other recent news, ConocoPhillips has been the subject of several notable developments. UBS raised its price target for the company to $115, maintaining a Buy rating, and highlighted positive operational updates and anticipated free cash flow improvements. Meanwhile, Citi also adjusted its price target to $115 from $140, citing OPEC strategy concerns but still seeing growth potential for ConocoPhillips. RBC Capital Markets followed suit, reducing its price target to $115 while keeping an Outperform rating, noting strategic adjustments in shareholder returns and cash flow expectations.

Additionally, ConocoPhillips announced the appointment of Katie McGinty to its board of directors, expanding the board to 13 members. McGinty brings extensive experience in sustainability and public sector roles, and she will serve on key committees within the board. In a separate development, Senator Elizabeth Warren and her colleagues have questioned ConocoPhillips regarding its lobbying activities related to a tax bill, seeking transparency on potential tax benefits. These recent events reflect ongoing strategic and operational shifts within ConocoPhillips, as well as external scrutiny from lawmakers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.