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Investing.com - Raymond James has lowered its price target on ConocoPhillips (NYSE:COP) to $115.00 from $117.00 while maintaining an Outperform rating, citing a lower commodity price strip since its last publication. According to InvestingPro data, the stock currently trades at an EV/EBITDA of 4.9x, with analysts’ targets ranging from $100 to $137.
The firm noted that ConocoPhillips beat second-quarter earnings expectations by approximately 3% compared to consensus estimates, while production exceeded Street forecasts by 3% but aligned with Raymond James’ own projections.
ConocoPhillips management expects higher distributions from Australia Pacific LNG (APLNG) of $800 million for fiscal year 2025 and tax benefits of approximately $500 million in deferred taxes for the same period, according to the research note.
The company’s agreement to sell Anadarko Basin assets for $1.3 billion is expected to close in early fourth quarter 2025, while management has reiterated all other fiscal year 2025 guidance items.
Raymond James highlighted that ConocoPhillips has a free cash flow yield of approximately 7% for 2026 and is trading at about 5.3 times enterprise value to EBITDA, with one of the longest core inventory runways in the industry that warrants a premium relative to peers.
In other recent news, ConocoPhillips announced plans to reduce its workforce by 20-25%, as confirmed by a company spokesperson. This decision was communicated to employees through a video message from CEO Ryan Lance. Additionally, ConocoPhillips has signed a 20-year agreement with Sempra Infrastructure to purchase 4 million tonnes per annum of liquefied natural gas from the Port Arthur LNG Phase 2 project in Texas. This agreement strengthens the existing partnership, which began with Phase 1 of the project. In terms of analyst coverage, Melius Research initiated coverage on ConocoPhillips with a Hold rating and set a price target of $117. Meanwhile, Piper Sandler raised its price target for ConocoPhillips to $124, maintaining an Overweight rating. Piper Sandler noted ConocoPhillips’ strong position among integrated oil companies, citing a projected 16.4% compound annual growth rate on free cash flow per share from 2025 to 2030. These developments reflect ConocoPhillips’ strategic moves in both operational and financial aspects.
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