Wall Street Cautious on ConocoPhillips (COP), Here's Why

​ConocoPhillips (NYSE:COP) is one of the Cheap NYSE Stocks to Buy Now. Wall Street has a cautious outlook on ConocoPhillips (NYSE:COP), mainly due to the supply-side risks facing the oil and liquids sector. On December 8, Arun Jayaram from J.P. Morgan lowered the firm’s price target on the stock from $112 to $102 and maintained a Buy rating. However, earlier on December 4, Charles Meade from Johnson Rice downgraded the stock from Buy to Hold and also lowered the price target from $108 to $105.

​Analyst Arun Jayaram from J.P. Morgan noted that the price reduction reflects the firm’s updated view of the sector for 2026. He noted that the sector is at risk from the supply side of oil and liquid fuel, which can keep the prices down. However, the demand for natural gas is increasing, which is seen as a positive sign for the sector.

​While elaborating on the supply side risks, the analyst noted that two scenarios can push the oil prices lower. The first being too much oil supply in comparison to demand, and the second being the end of the Russia-Ukraine war in 2026, which would again increase the oil supply.

​That said, ConocoPhillips (NYSE:COP) topped analysts’ expectations during its fiscal Q3 2025 announcement on November 6, and the stock price has increased more than 8.4% ever since. The company grew its quarterly revenue by 14.1% year-over-year to $15.52 billion, surpassing estimates by $893.56 million. Moreover, the EPS of $1.61 also topped the consensus by $0.20. Management attributed growth to the total company and Lower 48 production of 2,399 thousand barrels of oil equivalent per day.

​The company also raised full-year 2025 production guidance to 2.375 MMBOED and further reduced operating cost guidance to $10.6 billion.

​ConocoPhillips (NYSE:COP) is an exploration and production company that explores, transports, produces, and markets natural gas, crude oil, and bitumen. It operates through the following geographical segments: Alaska, Lower 48, Canada, Europe, the Middle East, North Africa, Asia Pacific, and Other International.

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