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BP downgraded at Morgan Stanley following disappointing trading update

As previously reported, Morgan Stanley analyst Martijn Rats downgraded BP to Equal Weight from Overweight with a price target of $41.50, down from $49.90. A disappointing trading update following several quarters of weak earnings puts 2025 guidance at risk, the analyst tells investors. The firm says the Energy sector typically performs well when three factors come together – rising oil & gas prices; rising inflation expectations; and rising interest rates. However, at the moment, none of these factors are in place, the analyst added.

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