On April 12, Morgan Stanley increased its target price for ConocoPhillips (COP) by $5 to $83. On March 21, Simmons changed its rating on ConocoPhillips from “neutral” to “overweight.” Among the 21 analysts tracking ConocoPhillips, 38% recommended a “hold,” while 62% recommended a “buy,” according to data compiled by Reuters. None of the analysts recommended a “sell.”
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More “buy” recommendations
Last month, the “buy” recommendations rose for ConocoPhillips. One reason for the increased “buy” recommendations could be the rise in oil prices. However, the Brent-WTI spread contracted by ~$0.5 on average in March compared to the previous month. So far, the Brent-WTI spread in April has been the lowest since August 2018.
ConocoPhillips might not have an advantageous position if the Brent-WTI spread contracts. However, with rising tensions in Libya, the spread could expand.
Mean target price
Analysts’ mean target price for ConocoPhillips is $79, which implies an ~20% upside based on its last closing price. In comparison, the target prices for EOG Resources (EOG) and Occidental Petroleum (OXY) suggest an upside of 16.2% and 22.6%, respectively.