Interactive Investor argues that even though oil majors are having a moment, even by strong standards BP’s (LON:BP) numbers are ‘superlative,’ Citywire reports. The comments came after the London-listed group updated investors on its full-year performance yesterday, reporting that its underlying replacement cost profit for full year 2018 had come in at $12.7 billion, more than double that reported for 2017.
Investors reacted positively to the results, sending BP’s share price more than five percent higher in the previous session, to close at the top of the FTSE 100 leaderboard. This morning, the shares have been steady, having inched 0.20 percent higher to 548.10p as of 08:07 GMT, as compared with a 0.16-percent fall in the Footsie.
Citywire quoted Interactive Investor analyst Richard Hunter as commenting yesterday that BP’s figures were ‘extremely impressive’, with profits doubling while revenues rose 24 percent over the year and the oil giant was ‘comfortable with oil around $50 per barrel’.
“Additionally, its colossal cash generative ability has enabled the share buyback programme to be an ongoing feature, while from an investment perspective, the dividend yield of 6.2% is the icing on the cake,” the analyst elaborated, adding that despite a 10-percent decline in BP’s share price over the last six months, the ‘trend over the last year is one of outperformance’ and the shares were a ‘strong buy’.
Other analysts on BP
UBS reaffirmed BP as a ‘buy’ yesterday, with a price target of 610p on the stock, while Sanford C. Bernstein, which is also bullish on the oil major with a ‘buy’ rating, set a valuation of 700p on the shares. According to MarketBeat, the London-listed energy group currently has a consensus ‘buy’ rating and an average price target of 641.11p.