Kepler has turned bullish on BP (LON:BP), pointing to continued momentum at the blue-chip oil major, WebFG News reports. The move comes after the FTSE 100 company inked a deal to buy the UK’s largest electric vehicle (EV) company, flagging a surge in the number of EVs in coming decades.
BP’s share price has been little changed in London in today’s session, having inched 0.05 percent lower to 582.23p as of 10:14 BST. The shares are underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.68 percent higher at 7,667.58 points.
Kepler turns bullish on BP
Kepler Cheuvreux hiked its rating on BP from ‘hold’ to ‘buy’ yesterday, lifting its price target on the shares from 530p to 650p. WebFG News quoted the analysts as pointing to the oil major’s strong delivery in both upstream and downstream, and noting that the group continued to show the right mindset, with strong capex discipline and commitment to shareholders.
The broker pointed out that BP’s upstream portfolio had swung back to growth with ‘impeccable’ project delivery in 2017 with eight start-ups on schedule and under budget, while 2018 is set to be a key year for delivery, with six projects on the cards.
Kepler further noted that while Macondo cost estimates had kept increasing through 2015-17, it now reckoned that the trend was over.
Other analysts on oil major
Societe Generale reaffirmed the FTSE 100 group as a ‘buy’ yesterday, without specifying a valuation on the shares. According to MarketBeat, BP currently has a consensus ‘buy’ rating and an average price target of 587.63p.
The blue-chip oil major is scheduled to update investors on its second-quarter performance on July 31.