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Goldman Sachs: 3 Reasons to Buy ConocoPhillips Right Now -- Barron's Blog
DOW JONES & COMPANY, INC. 10:27 AM ET 11/28/2016
Symbol Last Price Change
COP 46.12 +0.37 (+0.81%)
QUOTES AS OF 01:26:22 PM ET 11/28/2016
Goldman Sachs analyst Neil Mehta and team offer four reasons for upgrading ConocoPhillips(COP) to Buy from Neutral:

We upgrade ConocoPhillips(COP) from Neutral to Buy and add it to the Conviction List with 20% total return to our 12- month EV/DACF-based price target of $54 (from $47). Three factors drive our upgrade: (1) ConocoPhillips(COP) offers the most attractive free cash flow yield among large cap US majors/E&Ps, as we expect capex to stay low and 2017-2020 oil prices to normalize to above $50/bbl WTI; (2) we see a solid capital allocation story, with ConocoPhillips(COP) growing the dividend, reducing its share count and paying down debt, partly through asset sale proceeds; and (3) ConocoPhillips(COP) offers compelling relative and absolute valuation, especially given share price underperformance in 2016 (lagging Energy Select Sector SPDR ETF ( XLE) by 22% YTD).

Shares of ConocoPhillips(COP) have gained 2% to $46.66 at 10:24 a.m. today, while the Energy Select Sector SPDR ETF has dipped 0.1% to $72.63.

More at Barron's Stocks to Watch blog, http://blogs.barrons.com/stockstowatchtoday/