ConocoPhillips stock price target raised to $131 on dividend hike

Investing.com - Wolfe Research raised its price target on ConocoPhillips (NYSE:COP) to $131.00 from $130.00 on Thursday, while maintaining an Outperform rating on the stock. This target aligns with analyst sentiment, as InvestingPro data shows the consensus high target stands at $130, with the stock currently trading at $87.55—suggesting significant upside potential.

The price target adjustment follows ConocoPhillips’ announcement of an 8% dividend increase, which Wolfe Research describes as "twice that of XOM" and potentially a catalyst for market recognition of the company’s value. This increase reinforces COP’s impressive track record of maintaining dividend payments for 55 consecutive years, with the current yield at 3.56%.

Wolfe Research highlighted the oil and gas producer’s free cash flow growth disclosed in its third-quarter results, noting an expected increase of $1 billion during 2026-2028, followed by a $4 billion increase in 2029.

The research firm emphasized that ConocoPhillips’ portfolio breakeven point is falling, creating additional capacity for dividend growth that could support the new price target of approximately $131 per share.

Wolfe Research suggested that ConocoPhillips should be compared to larger energy companies like CNQ and CVX rather than smaller shale-focused E&P companies, stating that "COP is a major" with improving relative outlook due to greater transparency on its free cash flow trajectory.

In other recent news, ConocoPhillips has been the focus of several analyst updates and strategic developments. RBC Capital raised its price target for ConocoPhillips to $118, citing strong cash flow and earnings per share at the top of the company’s sensitivity ranges. UBS, however, adjusted its price target slightly downward to $122, maintaining a Buy rating while anticipating a strong operational update for the upcoming third-quarter results. Meanwhile, Wells Fargo maintained its Equal Weight rating with a $100 price target, reaffirming a neutral stance.

Additionally, Raymond James lowered its price target to $115, noting a decrease in commodity prices but highlighted that ConocoPhillips exceeded second-quarter earnings expectations by about 3%. In a strategic move, ConocoPhillips signed a 20-year liquefied natural gas offtake agreement with NextDecade, which is contingent upon a positive final investment decision on the Brownsville facility’s Train 5. Under this agreement, ConocoPhillips will purchase 1 million tonnes per annum of LNG from NextDecade’s Rio Grande LNG project. These recent developments provide insights into ConocoPhillips’ financial performance and strategic direction.

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