Monday, October 4, 2010

Morgan Stanley (NYSE:MS) Downgrades Conoco (NYSE:COP) to "Underweight"

With September being such a strong month for equities, many companies across a number of sectors have been downgraded on valuation. ConocoPhillips (NYSE:COP) was among those downgraded, as Morgan Stanley (NYSE:MS) lowered the rating of the company from "Equal Weight" to "Underweight."

Morgan said they liked the strategy of Conoco, but all of that is already priced into the stock in their estimation, and don't see much room for growth at their current multiples.

They recommend Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), as they offer an improved risk/reward scenario for investors, according to Morgan Stanley.

Conoco closed Friday at $57.86, gaining $0.43, or 0.75 percent.

A price target of $56 is maintained on Conoco.

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