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Investing.com - Piper Sandler raised its price target on ConocoPhillips (NYSE:COP) to $124.00 from $123.00 on Monday, while maintaining an Overweight rating on the oil and gas producer’s stock. According to InvestingPro data, the company appears undervalued at current levels, with 11 analysts recently revising their earnings expectations upward.
The research firm highlighted ConocoPhillips’ position as "increasingly differentiated and somewhat underappreciated" among integrated oil companies, noting its peer-leading 16.4% compound annual growth rate on free cash flow per share from 2025 to 2030. The company’s strong financial health is reflected in its EBITDA of $25.14 billion and moderate debt levels.
Piper Sandler pointed to ConocoPhillips’ combination of growth attributes, including 4% average year-over-year volume growth and what it described as "best-in-class resource depth" in the sector.
The firm projected stronger near-term free cash flow growth than expected for ConocoPhillips, estimating an additional $2.0 billion in 2026 in a flat price environment, or $1.3 billion at current strip prices.
Piper Sandler also emphasized the company’s sustainable shareholder returns, which averaged 10% annualized cash returns in the second quarter, and noted its "relatively attractive" valuation with a projected 7.0% free cash flow yield in 2026. The company has maintained dividend payments for 55 consecutive years, currently offering a 3.27% yield, and trades at a P/E ratio of 12.77x. For deeper insights into ConocoPhillips’ valuation and financial metrics, InvestingPro subscribers can access the comprehensive Pro Research Report, featuring expert analysis of what really matters about this $119 billion energy giant.
In other recent news, ConocoPhillips reported its second-quarter earnings for 2025, surpassing expectations with earnings per share (EPS) of $1.42, compared to the forecasted $1.38. The company also exceeded revenue projections, achieving $15 billion against an anticipated $14.91 billion. This performance highlights ConocoPhillips’ ability to outperform analyst estimates. RBC Capital has maintained its Outperform rating for ConocoPhillips, setting a price target of $113.00. The firm cites an improvement in the company’s organic free cash flow as a key factor. RBC Capital noted that major project spending is expected to decrease in the third quarter of 2025, which should further enhance cash flow generation. These developments reflect recent positive momentum for ConocoPhillips.
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