ConocoPhillips cut at Mizuho with more attractive opportunities elsewhere
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ConocoPhillips (NYSE:COP) -2.4% in a weak session for oil companies on Monday, as Mizuho downgraded the stock to Neutral from Buy with a $128 price target, trimmed from $143.
At its 2023 Analyst Day last week, ConocoPhillips (COP) presented a 10-year outlook that showcased its commitment to capital discipline, balanced resource depth and through-the-cycle cash returns, and while the outlook is compelling, Mizuho's Nitin Kumar said cash generation is weighted to the latter years (2029-32) and assumes consistency of Permian well productivity and higher commodity prices.
While ConocoPhillips (COP) trades at a discount to IOC/E&P peers on EV/EBITDA, it offers less value based on FCF- and NAV-based multiples, according to Kumar, who is moving to the sidelines in favor of more attractive opportunities including the firm's Top Picks Exxon Mobil (XOM), Coterra Energy (CTRA) and Diamondback Energy (FANG).
ConocoPhillips (COP) is expected to provide shareholders with almost 5% in annualized dividends and share buybacks, generating strong shareholder returns, The Value Portfolio writes in an analysis published recently on Seeking Alpha.