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Understanding Wall Street’s Pre-Earnings Ratings of ConocoPhillips

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Analyst recommendations

As of April 26, 2016, 24 analysts are providing recommendations on ConocoPhillips (COP). These recommendations include seven “strong buys,” 11 “buys,” and six “holds.” There are currently no “sell” or “strong sell” recommendations for the stock.

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Target price

The median target price for COP from the above Wall Street analysts is $60.00, while the mean target price from these recommendations is $60.10. Based on its mean target price, COP stock has a potential upside of ~24% from its closing price of $48.34 on April 26, 2017.

Changes since the 4Q16 earnings

ConocoPhillips reported its 4Q16 earnings on February 2, 2017. Since then, analysts’ “hold” recommendations for COP have fallen from seven to six, while “sell” recommendations for COP have fallen from one to zero. Recommendations of “strong buy,” “buy,” and “strong sell” ratings have remained unchanged.

Since ConocoPhillips’s 4Q16 earnings, COP’s median and mean target prices have risen. COP’s median target price has risen from $57.50 to $60.00, while its mean target price has risen from $57.73 to $60.10.

Other oil and gas producers

Based on the mean price targets from their respective Wall Street analysts, oil and gas peers Carrizo Oil & Gas (CRZO) and Gulfport Energy (GPOR) have potential upsides of ~67% and ~62%, respectively, from their April 26 closing prices. Denbury Resources (DNR) has a potential upside of ~22%.

Notably, the SPDR S&P Oil and Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies. The Energy Select Sector SPDR ETF (XLE) generally invests at least 95% of its total assets in oil and gas companies.

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