Shares in BP (LON:BP) have advanced in London in today’s session, outperforming the broader market, as analysts at RBC Capital Markets hiked their rating on the shares, flagging improving cash flows. The upgrade came after Barclays recently reaffirmed its bullish stance on the oil major, arguing that the company is on track a year into its five-year plan and momentum is building across the business.
As of 13:06 GMT, BP’s share price had added 0.82 percent to 480.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.56 percent higher at 7,285.28 points. The group’s shares have added more than seven percent to their value over the past year, as compared with about a 0.6-percent gain in the Footsie.
RBC lifts rating on BP
RBC Capital lifted its stance on BP from ‘sector perform’ to ‘outperform’ today, and hiked its price target on the shares from 550p to 570p.
Proactive Investors quoted the broker’s analyst Biraj Borkhataria as explaining in a note that 2017 had been a transition year for the blue-chip group, with several major projects in final execution stages and still a significant burden from the Deepwater Horizon disaster.
“We look to 2018 for continued earnings momentum, both in the upstream and downstream, and more importantly we expect cash conversion to improve this year,” Borkhataria pointed out, as quoted by the newswire, adding that the broker was expecting “improving earnings and cash generation to show through in early 2018 as BP captures higher commodity prices and widening crude spreads”.
Other analysts on oil major
Credit Suisse also remains upbeat on the blue-chip group, having reiterated its ‘outperform’ stance on the shares today, with a price target of 575p. According to MarketBeat, BP currently has a consensus ‘hold’ rating and an average price target of 549.12p.