BofA Downgrades ConocoPhillips (COP), JPMorgan and Piper Sandler Lower PT

ConocoPhillips (NYSE:COP) is one of the 12 Best American Energy Stocks to Buy Now. On January 16, BofA Securities downgraded its rating on ConocoPhillips (NYSE:COP) from Neutral to Underperform with a price target of $102. BofA analyst Kalei Akamine pointed to worries about the company’s relatively high oil breakeven price than competitors.

BofA believes that ConocoPhillips (NYSE:COP) needs oil prices of around $53 of WTI to cover its capital spending and dividend payments, which the research firm sees as “materially higher” when compared to its peers. BofA also noted that the company’s debt-adjusted free cash flow yield of just 4.4% is “uncompetitive within the peer group.”

The investment firm believes these pressures are partly linked to the long-cycle investments by ConocoPhillips (NYSE:COP) in Port Arthur LNG and Willow projects, which are still two and four years away from beginning operations, respectively.

On January 13, JPMorgan reduced its price target on ConocoPhillips (NYSE:COP) from $102 to $98 and maintained its Overweight rating on the stock.

Earlier, on January 8, Piper Sandler also cut its price target on ConocoPhillips (NYSE:COP) from $115 to $109 but kept its Overweight rating.

ConocoPhillips (NYSE:COP) is an American energy company that ranks among the world’s largest independent oil and gas exploration and production companies based on production and proved reserves.

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Disclosure: None. This article is originally published at Insider Monkey.