ConocoPhillips Revised To $85 On Robust Production And Margin Outlook

After the 2013 fourth quarter and full-year earnings release, we revised our price estimate for ConocoPhillips to $77 per share, which was more than 15% above its market price at that point in time. Since then, the stock has moved up to match our price estimate. However, we now believe that a robust production and margin expansion outlook could fuel the stock price to $85/share, which is around 12.9x our 2014 full-year adjusted diluted EPS estimate for the company.