Energy
Merrill Lynch Raises Price Targets on Top Energy Stocks Rated Buy
Published:
Last Updated:
Despite the lack of a production freeze agreement in the Doha meeting, and the end of the oil workers strike in Kuwait, oil prices are still hanging around the $40 mark for benchmark West Texas Intermediate. Plus, there are numerous anecdotal signs that perhaps prices can press to the upper $40s or even the $50 level by the end of the year or early 2017. One thing is for sure, Wall Street is taking notice and acting accordingly.
In a new research note, Merrill Lynch sees the potential and raises its price targets on some of the top stocks in its energy research coverage universe. We found four that make good sense for investors looking to add energy companies to portfolios now.
ConocoPhillips
This stock may offer investors solid upside potential despite the big dividend cut earlier this year. ConocoPhillips (NYSE: COP) is the world’s largest independent exploration and production company, based on production and proved reserves. Headquartered in Houston, ConocoPhillips had operations and activities in 21 countries, $30 billion in annual revenue, $97.5 billion of total assets and approximately 15,900 employees as of the end of 2015. Production averaged 1,589 thousand barrels of oil equivalents in 2015, and proved reserves were 8.2 billion barrels of oil equivalents as of last December 31.
Many Wall Street analysts feel Conoco can accelerate growth from a reloaded portfolio depth in the Bakken and Eagle Ford, with visibility on future growth from a sizable position in the Permian. The company remains the one of the best values as short sellers circled after the dividend cut as many growth and income managers sold shares.
Conoco investors receive a 2.15 % dividend. The Merrill Lynch price target on the stock was raised by a dollar to $71. The Thomson/First Call consensus price target is much lower at $45.52, and the stock ended Wednesday above that at $47.08.
24/7 Wall St.Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
