BP downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded BP to Sector Perform from Outperform with a price target of 550 GBp, down from 650 GBp. Despite a recent focus on returns and new growth engines, BP shares have underperformed the peer group and over a longer-term horizon have materially lagged the sector, the analyst tells investors in a research note. The firm says that while the shares continue to screen as attractive, the company’s balance sheet “should be healthier than it is at this point in the cycle,” its distributions are less defensive than peers, and there is risk that its new growth ventures could disappoint.