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Investing.com - Piper Sandler has reiterated its Overweight rating on ConocoPhillips (NYSE:COP) with a price target of $115.00, closely aligning with InvestingPro’s Fair Value assessment of the energy giant, which suggests the stock may be fairly valued at current levels.
The firm highlighted ConocoPhillips’ sustainable and growing shareholder returns as the primary investment case for the energy stock. Piper Sandler noted the company has a better five-year-plus outlook than any other in its coverage universe. This view is supported by ConocoPhillips’ impressive 55-year streak of consecutive dividend payments and current dividend yield of 3.85%.
The research firm pointed to ConocoPhillips’ peer-leading resource depth and diversity, improving capital efficiency and cost structure, and what it describes as best-in-class free cash flow per share compound annual growth rate of approximately 12% through 2030 and beyond. The company currently boasts a healthy free cash flow yield of 7% and operates with a moderate debt-to-equity ratio of 0.36.
Piper Sandler acknowledged investor concerns about crude oil price exposure in a bearish market and the back-end loaded free cash flow growth from the Willow project’s 2029 start-up.
The firm believes the market underappreciates ConocoPhillips’ near-term growth of approximately 6% per year in free cash flow per share from 2025 to 2028, before the Willow project begins production.
In other recent news, ConocoPhillips reported its third-quarter 2025 earnings, exceeding earnings per share (EPS) expectations with adjusted earnings at $1.61 per share, compared to the projected $1.45. However, the company fell short of revenue forecasts, bringing in $14.55 billion against an anticipated $14.78 billion. Additionally, ConocoPhillips has signed a memorandum of understanding with Novatera and the Syrian Petroleum Company to enhance cooperation in the natural gas sector. This agreement aims to boost domestic natural gas production and improve energy security in Syria. In analyst updates, UBS lowered its price target for ConocoPhillips to $117 from $122, while maintaining a Buy rating. The adjustment follows ConocoPhillips’ strong operational performance and ongoing cost-reduction efforts. These developments highlight the company’s current strategic initiatives and financial performance.
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