BofA Downgrades ConocoPhillips (COP), JPMorgan and Piper Sandler Lower PT

Core Viewpoint - ConocoPhillips (NYSE:COP) faces challenges due to a higher oil breakeven price compared to competitors, leading to recent downgrades from multiple investment firms [1][2]. Group 1: Analyst Ratings and Price Targets - BofA Securities downgraded ConocoPhillips from Neutral to Underperform with a price target of $102, citing concerns over its high oil breakeven price [1]. - JPMorgan reduced its price target from $102 to $98 while maintaining an Overweight rating [3]. - Piper Sandler cut its price target from $115 to $109 but also kept its Overweight rating [3]. Group 2: Financial Metrics and Comparisons - BofA estimates that ConocoPhillips requires oil prices around $53 WTI to cover capital spending and dividend payments, which is significantly higher than its peers [2]. - The company's debt-adjusted free cash flow yield is reported at 4.4%, which BofA considers uncompetitive within the industry [2]. Group 3: Long-Cycle Investments - The pressures on ConocoPhillips are partly attributed to long-cycle investments in the Port Arthur LNG and Willow projects, which are projected to begin operations in two and four years, respectively [2].