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ConocoPhillips (NYSE:COP) Stock Rises After Favorable Court Ruling

Story Highlights

ConocoPhillips has secured a U.S. court’s backing in its efforts to get Venezuela to compensate it for forcefully seizing its assets in the country. COP stock is trending higher as investors welcomed the decision. However, the battle is far from over as Venezuela has rejected the court’s ruling.

ConocoPhillips (COP) stock is trending higher in Tuesday’s pre-market trading session in reaction to a favorable court ruling in the Venezuelan asset seizure matter. ConocoPhillips is a multinational oil and gas company. 

A U.S. court has upheld the World Bank tribunal’s multibillion-dollar award to ConocoPhillips against Venezuela. In 2007, Venezuela seized ConocoPhillips’ stakes in three oil projects in the country. The forceful takeover happened as part of the nationalization of certain industries during the time of the now late former President Hugo Chavez.

The company challenged Venezuela’s action and the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) sided with it. Although ConocoPhillips had sought as much as $30 billion from Venezuela to compensate its loss, the ICSID awarded it $8.75 billion in damages in 2019. The court ruling grants the company fresh authority to go after Venezuela to collect the tribunal’s award, according to a Reuters report.

ConocoPhillips stock was up 1.74% in Tuesday’s pre-market trading. COP stock edged up about 0.10% to $105.24 on August 22, bucking the 2.14% drop in the S&P 500 (SPX) Index. The stock has gained more than 46% year-to-date.

Will COP Stock Go Higher?

ConocoPhillips has a long track record of consistently paying dividends. The company recently reported Q2 2022 earnings that exceeded consensus estimates. Wall Street professionals are bullish on the stock. According to TipRanks’ analyst rating consensus, COP stock is a Strong Buy based on 10 Buys and one Hold. The average COP price target of $128.73 implies over 22% upside potential. 

ConocoPhillips scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

Moreover, COP stock is a favorite oil stock for both Wall Street elites and retail investors. TipRanks’ Hedge Fund Trading Activity tool shows that confidence in COP is currently Very Positive. Some 24 hedge funds increased their cumulative holdings of the stock by 2.5 million shares in the last quarter.

Furthermore, TipRanks’ Stock Investors tool shows that retail investor sentiment is currently Very Positive on ConocoPhillips. In the past 30 days, 7.1% of the best-performing portfolios tracked by TipRanks increased their exposure to COP stock.

Final Thoughts

The court ruling is a favorable development for ConocoPhillips in its efforts to recover the assets that the company lost in the Venezuela oil industry nationalization. However, it may take long to make the recovery, considering that Venezuela has rejected the court’s decision.

Read the full Disclosure

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