ConocoPhillips: UBS maintains Buy, raises PT to $124 from $116.

ConocoPhillips: UBS maintains Buy, raises PT to $124 from $116.

UBS Group has raised its price target on ConocoPhillips (NYSE: COP) to $124 from $116, while maintaining a Buy rating on the integrated oil and gas producer. The move comes after a strong second-quarter earnings report and positive analyst sentiment surrounding the company's growth prospects.

ConocoPhillips, which specializes in exploring and producing hydrocarbons, reported earnings per share (EPS) of $1.42 for the second quarter of 2025, exceeding market expectations of $1.38. The company also surpassed revenue projections, achieving $15 billion against an anticipated $14.91 billion. This performance highlights ConocoPhillips' ability to outperform analyst estimates.

UBS Group cited ConocoPhillips' strong financial health, including a 16.4% compound annual growth rate on free cash flow per share from 2025 to 2030, and its "best-in-class resource depth" in the sector. The company's EBITDA was $25.14 billion, and its moderate debt levels further underscore its financial stability.

The firm also noted ConocoPhillips' sustainable shareholder returns, with an average annualized cash return of 10% in the second quarter. The company has maintained dividend payments for 55 consecutive years, currently offering a 3.27% yield. Additionally, ConocoPhillips trades at a P/E ratio of 12.77x, reflecting its relatively attractive valuation.

Institutional investors have shown renewed interest in ConocoPhillips, with Cambiar Investors LLC adding $47.1 million in shares on August 19. Executive activity has also added momentum, as EVP Kirk L. Johnson purchased 5,300 shares at $94.24 apiece, boosting his holdings by 57.44%.

Analysts remain bullish on ConocoPhillips, with 17 "buy" ratings and two "holds" as of August 19. The stock retains a "Moderate Buy" consensus, averaging $120.84 as the 12-month target. Institutional ownership remains strong at 82.36%, reflecting confidence in the energy producer's midstream operations and dividend sustainability.

UBS Group's price target increase reflects its positive outlook on ConocoPhillips' growth prospects and financial health. The company's strong performance and positive analyst sentiment continue to support its stock price.

Reference list:
[1] https://www.marketscreener.com/news/ubs-adjusts-price-target-on-conocophillips-to-124-from-116-maintains-buy-rating-ce7c51d2df8df227
[2] https://ca.investing.com/news/analyst-ratings/conocophillips-stock-price-target-raised-to-124-from-123-at-piper-sandler-93CH-4164287
[3] https://www.ainvest.com/news/conocophillips-slides-243rd-trading-volume-institutional-investors-boost-holdings-hike-dividend-bullish-analyst-outlook-2508/
[4] https://www.theglobeandmail.com/investing/markets/stocks/COP/pressreleases/34126466/conocophillips-cop-receives-a-buy-from-bmo-capital/