Improved outlook seen for ConocoPhillips, oil prices at Raymond James

Raymond James sees a better year for oil in 2014, and a better year for ConocoPhillips (COP +1%) - whose rating the firm raises by a notch to Market Perform from Underperform - but warns not to get too excited.

Analyst Pavel Molchanov's main concern about COP is significant outspending, but he says this becomes less pressing in the context of the improved oil forecast, and he finds valuation metrics more reasonable.

Molchanov still sees better E&P ideas - among multinational large-caps, he prefers Apache (APA), Anadarko (APC), BG Group (BRGYY, BRGXF), Marathon Oil (MRO) and Occidental (OXY) - but he no longer finds sufficient downside in COP to warrant a continued negative stance.

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Comments (5)
  • CimGlenn
    , contributor
    Comments (48) | Send Message
    Great company. Need to see a break above $71 near term to confirm the correction is over. Potential to high $70's in next month or 2.
    6 Jan 2014, 10:49 AM Reply Like
    , contributor
    Comments (5167) | Send Message
    Gee thanks Pavel for an obvious and extremely late positive call on COP.


    out of all the companies he mentions COP is the best managed & shareholder friendly, most production increase yoy and best sustainable and highest dividend.
    Other than that, it's a great investment !
    6 Jan 2014, 10:58 AM Reply Like
  • financeminister
    , contributor
    Comments (1228) | Send Message
    wish I could get my hands on those old analysts rating downgrades and all when COP was selling off assets... they were claiming that COP won't be recovering for a long time and blah blah blah. Among big oil, COP and PSX have been the best investments in the last two years. Great dividends + great share price appreciation + dividend increases.... what more could an investor ask?
    6 Jan 2014, 11:06 AM Reply Like
  • Robert Rapier
    , contributor
    Comments (101) | Send Message
    Molchanov is also the guy who kept a Buy on KiOR all the way through a 90 percent loss.
    6 Jan 2014, 05:17 PM Reply Like
  • stuartspoonemore
    , contributor
    Comments (109) | Send Message
    Translation: My call was wrong. I admit my mistake kinda. Mumble mumble mumble.
    6 Jan 2014, 11:36 AM Reply Like
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