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BP share price down as RBC takes group off ‘top picks’ list

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Shares in BP (LON:BP) have been subdued in London this morning, as RBC Capital downgraded the oil major, taking it off its ‘Top Picks’ list. The analysts, however, have retained their positive view on the blue-chip energy group, continuing to see the company as an ‘outperform’.

As of 10:27 BST, the BP share price had fallen 0.75 percent to 565.60p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.16 percent higher at 7,448.90 points. The group’s shares have added more than 14 percent to their value over the past year, as compared with about a 3.7-percent gain in the Footsie.

RBC points to BP share price performance

RBC reaffirmed BP as an ‘outperform’ today, with a  price target of 625p on the shares, while taking the company off their ‘top picks’ list.

“We remain constructive on BP for its medium-term growth profile and improving cash flow framework,” the broker’s analyst Biraj Borkhataria pointed out, as quoted by Proactive Investors, adding, however, that the shares had “performed well versus the sector in recent months, and we see less valuation upside now”.

RBC further reckons that “BP’s investment case over the medium term remains compelling,” and sees “upside to shareholder returns provided BP can deliver on its asset sales programme over 2019-20, with debt reduction being the near-term priority”.

Other analysts on blue-chip energy group

JPMorgan Chase & Co, which is ‘overweight’ on BP, lifted its price target on the shares from 600p to 625p last week, while HSBC which rates the company as a ‘buy,’ trimmed its valuation on the stock from 660p to 650p. According to MarketBeat, the blue-chip energy group currently has a consensus ‘buy’ rating and an average price target of 651.47p.

BP is scheduled to update investors on its first-quarter performance on April 30.

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