Equities By Region Energy UK

BP share price: Goldman Sachs maintains ‘buy’ rating on group

Share this article!

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.

As of 10:44 BST, Friday, 10 August, BP plc share price is 560.00p.

Add Comment

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.