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Jefferies Boosts Price Target for ConocoPhillips; Higher Oil Prices Coming? (COP)

By Dividend.com,  April 17, 2012, 09:31:59 AM EDT

Integrated oil giant ConocoPhillips ( COP ) on Tuesday caught some positive commentary from analysts at Jefferies & Co.

The firm maintained its "Hold" rating on COP but lifted its price target from $75 to $80. That new target suggests an 8% upside to the stock's Monday closing price of $73.83.

A Jefferies analyst commented, "We have moved our long-term oil price assumption up from US$85/bbl to US$100/bbl (Brent). The key reason is the rising cost of extraction of the future marginal barrel, which is increasingly sour, heavy or in very deep water. The impact on the sector is significant, with our Sum-of-Parts and DCF valuations rising by 13%-16% and EPS in 2013 by 11%."

ConocoPhillips shares posted modest gains in premarket trading Tuesday.

The Bottom Line
Shares of ConocoPhillips ( COP ) have a 3.58% dividend yield, based on last night's closing stock price of $73.83. The stock has technical support in the $68-$70 price area. If the shares can firm up, we see overhead resistance around the $75-$78 price levels.

ConocoPhillips ( COP ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: COP



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