The Benchmark Company Reaffirms ConocoPhillips (COP) Hold Rating

The Benchmark Company's analyst Mark Gilman reaffirmed his Hold rating, with a negative bias, for shares of ConocoPhillips (NYSE: COP).

Gilman said that ConocoPhillips's recent board meeting focused more on share price management than managing the actual business' operations.

The analyst also sees little reason for ConocoPhillips to retain half of its current 20% stake in Lukoil shares.

The Benchmark Company's analyst wrote, "in the context of our decidedly mixed review of management’s recent initiatives and accomplishments, we are reaffirming our Hold rating on ConocoPhillips shares with a clear bias to a somewhat more negative posture. At current levels, the stock is trading at an 8% normalized ($50 WTI, $6.00 Henry Hub) earnings multiple premium to the peer group. Relative to our assessment that the shares would be fairly valued at a modest earnings multiple discount to the peer group, the current valuation appears to be overly generous. Nevertheless, the valuation gap, in our view, is insufficient, despite the recently favorable relative performance of the stock, to justify a formally more cautious investment posture."