ConocoPhillips stock price target raised to $115 from $111 at UBS

Investing.com - UBS raised its price target on ConocoPhillips (NYSE:COP) to $115 from $111 while maintaining a Buy rating ahead of the company’s second-quarter 2025 results. Currently trading at $95.37, InvestingPro analysis suggests the stock is undervalued, with a P/E ratio of 12x and an impressive 55-year track record of consecutive dividend payments.

The investment bank noted that despite ConocoPhillips delivering a positive operational update with its first-quarter 2025 results, share performance was hampered by messaging around the return of capital program.

UBS believes another positive operational quarter will help re-center the story for ConocoPhillips, with the firm noting that "this bandaid now ripped off" regarding capital return concerns.

The bank highlighted that ongoing cost savings continue to flow through, potentially lowering ConocoPhillips’ breakeven points and increasing its top-tier inventory duration.

UBS also pointed to an anticipated free cash flow ramp as long-cycle spending begins to decrease in the second half of 2025, contributing to what the firm sees as a strong outlook for ConocoPhillips in the latter part of the year.

In other recent news, ConocoPhillips held its annual stockholders meeting where key proposals were voted on, including the election of directors and ratification of auditors. All 12 nominated directors were elected, and Ernst & Young LLP was ratified as the independent auditor for 2025. Meanwhile, a proposal to amend the Certificate of Incorporation to eliminate supermajority voting was not approved. In addition, Citi and RBC Capital Markets both adjusted their price targets for ConocoPhillips to $115, citing strategic shifts and market conditions, although both firms maintained favorable ratings on the stock. Citi highlighted the company’s potential resilience amidst OPEC’s new strategy, projecting annual growth of 3.5-4.0% through 2030. RBC Capital noted a strategic pivot in shareholder returns, with a new target payout ratio of 45% of cash flow from operations. Furthermore, ConocoPhillips appointed Katie McGinty to its board of directors, expanding the board to 13 members. This appointment adds her extensive experience in sustainability and the private sector to the company’s governance. Lastly, ConocoPhillips was questioned by U.S. senators regarding its lobbying activities related to a tax bill, raising concerns about potential tax benefits for the company.

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