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.

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.

READ NEXT: 12 Stocks that Will Bounce Back According to Wall Street Analysts and 10 Best US Penny Stocks to Buy.

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