CXO - Wall Street supports ConocoPhillips deal talk for Concho

Shares of Conoco Phillips (COP) shed 4.5% this week while Concho Resources (CXO) jumped 8.7% after Bloomberg reported Conoco is in talks to buy Concho, with potential deal news coming in the next few weeks.According to Street Advisor, Wall Street analysts note the acquisition would make strategic sense for Conoco given the increased exposure in the Permian for an asset that likely would be accretive.From Concho's perspective, analysts say the company's solid inventory status and healthy free cash flow generations mean the company does not need to capitulate at lows, and shareholders would expect a healthy premium to Oct. 13's ~$44 price.J.P. Morgan analyst Phil Gresh says Concho has strong confidence that it has assembled the highest quality inventory in the Permian Basin, and shareholders are looking for a 20%-plus deal premium.Tudor Pickering Holt says its checks show support across the board, and believes a deal would be accretive to

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Wall Street supports ConocoPhillips deal talk for Concho