2023-04-17 14:54:41 ET
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 .
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ConocoPhillips cut at Mizuho with more attractive opportunities elsewhere