Piper Sandler analyst Ryan Todd reduced the firm's price target on ConocoPhillips (NYSE:COP) from $115 to $109 on January 8. The analyst maintained an 'Overweight' rating on the shares. The new target still suggests an upside of nearly 12% from the current share price.
ConocoPhillips is one of the world's largest independent exploration and production companies by oil and natural gas production and proved reserves. It is included in a list of 10 high-yield crude oil stocks to buy following recent U.S. actions in Venezuela.
The analyst stated that as 2026 approaches, the crude oil outlook remains bearish, making it difficult for the sector to outperform the broader market. However, Piper Sandler believes the oil refining market looks better than last year, driven by expectations of tighter supply and demand and crude differential tailwinds.
ConocoPhillips stands to gain from recent American action in Venezuela. The company is owed billions by the Venezuelan government, which seized its assets without compensation in 2007 when then-President Hugo Chávez effectively nationalized the country's oil industry. ConocoPhillips took the Venezuelan government to arbitration court and has since won awards totaling up to $12 billion. Reports indicate the South American country has only paid a fraction of that amount.
It remains unclear whether ConocoPhillips will actually receive those claims or reinvest in Venezuela. The prospects of the company recovering billions in damages and regaining access to massive new oil reserves have helped the stock attract strong investor interest.
With an annual dividend yield of 3.33% as of this writing, ConocoPhillips is also included in a list of the 12 best crude oil stocks to buy for dividends.