ConocoPhillips stock price target lowered to $122 at UBS on oil price outlook

Published 13/10/2025, 14:58
© Reuters.

Investing.com - UBS lowered its price target on ConocoPhillips (NYSE:COP) to $122.00 from $124.00 while maintaining a Buy rating ahead of the company’s third-quarter 2025 results. According to InvestingPro data, the stock has experienced a 7.66% decline over the past week, though analysis suggests the company is currently undervalued.

The firm expects ConocoPhillips to deliver another strong operational update, with production volumes likely trending above the midpoint of the company’s 2.33-2.37 million barrels of oil equivalent per day guidance range.

UBS projects earnings per share slightly below consensus estimates but anticipates that market estimates will move toward the $1.35-$1.40 range as mark-to-market adjustments are factored in.

Despite reducing its oil price forecast by approximately $4 per barrel year-over-year, UBS continues to see ConocoPhillips positioned for cash flow from operations and free cash flow improvement in 2026.

The firm attributes this positive outlook to expected cost reductions and decreased long-cycle capital expenditures at the energy company.

In other recent news, ConocoPhillips has reported significant developments that may interest investors. The company exceeded second-quarter earnings expectations by approximately 3% compared to consensus estimates, with production surpassing Street forecasts by the same margin. RBC Capital has raised its price target for ConocoPhillips to $118, citing strong cash flow, while Raymond James adjusted its target to $115 due to changes in commodity prices. ConocoPhillips has also signed two notable 20-year liquefied natural gas (LNG) agreements. One agreement is with NextDecade for 1 million tonnes per annum from the Rio Grande LNG project, contingent on a final investment decision on Train 5. Another agreement with Sempra Infrastructure involves 4 million tonnes per annum from the Port Arthur LNG Phase 2 project, extending their existing partnership. Additionally, ConocoPhillips plans to reduce its workforce by 20-25%, as confirmed by a company spokesperson.

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