UBS Lifts PT on ConocoPhillips (COP) Stock, Maintains Buy

ConocoPhillips (NYSE:COP) is one of the Best Large Cap Value Stocks to Invest In. UBS lifted the price target on the company’s stock to $115 from $111, while maintaining a “Buy” rating on the shares, as reported by The Fly. The firm sees another positive operational quarter re-centering the story for the company. Furthermore, the firm mentioned that ongoing cost savings are flowing through, potentially lowering ConocoPhillips (NYSE:COP)’s breakeven points and increasing the top-tier inventory duration.

Notably, the firm pointed to an expected FCF ramp as long-cycle spending starts to decrease in H2 2025, contributing to the robust outlook for ConocoPhillips (NYSE:COP) in the latter part of the year. Amidst the volatile macro environment, ConocoPhillips (NYSE:COP) remains confident in the competitive advantages stemming from its differentiated portfolio, robust balance sheet as well as disciplined capital allocation framework.

In Q1 2025, the company demonstrated healthy execution and reduced its full-year capital and operating cost guidance. Full-year capital expenditures guidance has been lowered to $12.3 billion – $12.6 billion as compared to the prior guidance of ~$12.9 billion. Notably, the full-year adjusted operating cost guidance was also lowered to $10.7 billion – $10.9 billion compared to the prior guidance of $10.9 billion – $11.1 billion.

While we acknowledge the potential of COP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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