BP’s (LON:BP) share price has been little changed in today’s session as Credit Suisse trimmed its stance on the blue-chip oil major. The move comes ahead of the energy group’s second-quarter update on July 30.
As of 14:32 BST, BP’s share price had 0.04 percent higher to 546.60p as of 14:34 BST, marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.21 percent higher at 7,552.35 points. The group’s shares have given up more than seven percent of their value over the past year, as compared with about a two-percent fall in the Footsie.
Credit Suisse trims stance
Credit Suisse trimmed its rating on BP from ‘outperform’ to ‘neutral’ today, further lowering its valuation on the shares from 640p to 605p, as part of a review of the European oil sector. Proactive Investors quoted the broker as commenting that they had instead switched their preference to France’s Total, arguing that the French group has the capacity to distribute more to shareholders than BP in the 2021-25 period.
The analysts elaborated that they have calculated that Total could distribute about a 10.5-percent annualised yield (dividend and buyback) based on current market value, compared to the UK major’s potential for about 8.5 percent.
Other analysts on BP
HSBC, which rates the oil major as a ‘buy,’ lifted its target on the BP share price from 650p to 655p today, while last week, Kepler Capital Markets, which rates the company as a ‘buy,’ set a valuation of 680p on the stock. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 650.59p.
Earlier this year, RBC took the group off its ‘top picks’ list, arguing that the shares had performed well versus the sector in recent months, and it now saw less valuation upside.