Deutsche Bank Comments On "Juicy Worms" For ConocoPhillips

According to Deutsche Bank, ConocoPhillips's COP 2011 analyst meeting saw some “juicy worms”. Deutsche Bank reported that ConocoPhillips' analyst meeting provided the most material content and shareholder-friendly strategy of the big three oils analyst meetings in March (XOM, CVX, COP). “CEO Jim Mulva was on good form, and extended the successful “shrink to grow” strategy through 2012, and his retirement. The “Beauty Pageant” of future CEO contenders to take his spot each presented; and provided a combination of interest and amusement. There were no swimwear or evening gown sections, but their interviews went well. Reiterate Buy, PT $90. Our NAV analysis yields $96 ($87 with 10% premium); our P/E methodology yields $84 (target P/E 10x, mid-cycle EPS est. $8.40). The average results in our blended $90 PT. Risks include a disappointing execution of their announced restructuring plan and much weaker oil and gas prices, to which COP is highly exposed.” Applied Materials closed yesterday at $15.16.