Analyst Roger Read from Wells Fargo maintained a Hold rating on BP (BP – Research Report) and keeping the price target at $37.00.
Roger Read has given his Hold rating due to a combination of factors that reflect BP’s current strategic direction and financial outlook. BP’s recent Capital Markets Update outlined a plan to enhance shareholder value through strategic reallocation of capital expenditure, focusing more on high-return oil and gas projects while reducing investments in transition businesses. This approach is expected to improve performance and returns, but execution remains crucial for achieving these goals.
Furthermore, while BP aims for significant free cash flow growth, the projections suggest a more modest expansion than the company targets. The company’s commitment to returning a substantial portion of cash flow to shareholders aligns with industry peers, yet the actual growth in free cash flow and cost efficiencies will be pivotal in realizing these returns. Overall, the Hold rating reflects a cautious optimism about BP’s strategic plans, balanced by the need for effective execution and market conditions.
In another report released on February 24, Berenberg Bank also maintained a Hold rating on the stock with a $34.00 price target.
BP’s price has also changed slightly for the past six months – from $34.390 to $32.680, which is a -4.97% drop .