Conoco Stakes On Russia, S&P Stakes On Conoco

Standard & Poor's Equity Research department raised estimates and the target price on the US oil major ConocoPhillips, referring to revised oil and gas price projections, and new estimates for the company's stake in Russian oil giant Lukoil.

ConocoPhillips purchased 7.59 percent stake in Lukoil in September 2004, and reportedly last week increased the stake by 2.4%, S&P Equity Research said. Also, ConocoPhillips signed a memorandum of understanding with Russia?s gas monopoly Gazprom, to study development of Russian huge Shtokman gas field.

S&P Equity Research raised ConocoPhillips' 2004 earnings estimate to $11.40 per share from $10.79, and raised the 2005 estimate to $10.26 from $9.54. The research firm raised ConocoPhillips' 12-month target price to $93 from $86 based on a blend of discounted-cash flow and peer multiples. The new price target is nine times the firm's 2005 earnings-per-share estimate, a discount to peers, said S&P Equity Research, which rates ConocoPhillips at "hold."