Improved outlook seen for ConocoPhillips, oil prices at Raymond James

|About: ConocoPhillips (COP)|By:, SA News Editor

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.