A new report claims BP (BP) has lost interest in renewable energy as it refocuses on its fossil fuel business. Insider sources told Reuters the company will announce on Wednesday the elimination of its pledge to increase renewable generation to 50 gigawatts by 2030. This comes after the energy company altered its plan to reduce oil and gas production by 2030 in favor of renewable energy late last year.
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On top of cutting its renewable energy output plans, BP will also allegedly sell assets and divest businesses related to renewable energy. Lackluster performance from the sector is part of the reason the energy company is ditching its renewable goals.
There are also outside forces applying pressure to BP’s renewable energy plans. That includes claims that Elliott Investment Management used its nearly 5% stake in BP stock to influence the oil and gas company’s decision on renewable energy. Rebounding gas prices and President Donald Trump taking office are also likely contributing to this policy change.
How This Affects BP Stock Today
While environmental, social, and governance (ESG) investors won’t be pleased with BP’s course change, others are celebrating today as the company returns focus to a field with proven results. This had the stock up 0.18% today, building on a 16.26% year-to-date increase and a 1.41% rally over the last year. That’s welcome news after the stock dropped 0.82% on Friday.
Is BP Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for BP is Moderate Buy based on five Buy, six Hold, and one Sell ratings over the last three months. With that comes an average price target of $37.58, a high of $50, and a low of $31.80. This represents a potential 10.89% upside for BP stock.
