Goldman Sachs continues to see BP (LON:BP) as a ‘buy,’ arguing that the group is ‘on the cusp of’ delivering one of the industry’s strongest pipelines of new oil and gas projects, Proactive Investors reports. The comments follow the oil major’s latest results, as well as the group’s deal to buy BHP Billiton (LON:BLT) shale oil and gas assets in the US.
BP’s share price, however, is down in negative territory, having given up 0.78 percent to 560.00p as of 10:25 BST. The decline is largely in line with losses in the broader UK market, with the benchmark FTSE 100 index currently standing 0.65 percent lower at 7,691.71 points. The group’s shares have added more than 22 percent to their value over the past year, as compared with about a four-percent gain in the Footsie.
Goldman Sachs upbeat on BP
Goldman Sachs reaffirmed its ‘buy’ rating on BP, with a 12-month price target of 730p, having also added the group to its Conviction list.
“BP is on the cusp of delivering one of the industry’s strongest pipelines of new oil & gas projects […] with sector-leading production growth, free cash flow improvement and unproductive capital release from mega-projects,” the analysts said in a note to clients, as quoted by Proactive Investors.
The broker elaborated that the delivery of a record pipeline of upstream projects was progressively bringing the FTSE 100 oil major “closer to the sweetspot of its exportation and production transformation, which we believe will materialise in 2019”. Goldman Sachs estimates that “BP’s portfolio of new projects is more profitable today and is now among the best in the industry”.
Other analysts on oil major
JPMorgan Chase & Co, which sees BP as a ‘buy,’ set a price target of 650p on the shares this week. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 611.50p.