Oil stock BP (NYSE:BP) caught a bit of an updraft in Monday afternoon’s trading, thanks in large part to a new report from RBC Capital. The report suggests there’s more opportunity afoot, and investors decided to take the report at its word, sending shares up fractionally.
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The word from RBC Capital, via analyst Biraj Borkhataria, suggested that BP has indeed had some troubles lately. Among them was a discouraging earnings report and a “lack of clarity on management.” However, Borkhataria noted that the latest pullback from investors might have been a bridge too far.
In fact, he is looking for a confirmation on the new CEO’s appointment to come soon, as well as an upgrade in its credit report. That combination of factors is likely to serve as an upward catalyst for BP and give its now-somewhat-depressed stock price a boost as well.
BP’s Strange Look Forward
Yet, even as things might be starting to look up, BP also planned some rather unusual pursuits going forward. First, it plans to get into the Japanese retail electricity market, which appears to be part of a larger plan to convert itself into an “integrated energy company.”
This is part of a larger plan to move away from fossil fuels, reports note. And, even as BP looks to electrify Japan, it’s also pulling back on some of its current fossil fuel operations. It’s departing a natural gas field in Senegal after disagreements between itself and the Senegalese government over the produce’s overall destination. The government wanted it kept domestically, while BP was planning to use it for exports.
Is BP a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on CCL stock based on five Buys and one Hold assigned in the past three months, as indicated by the graphic below. After an 8.1% rally in its share price over the past year, the average BP price target of $47.32 per share implies 31.85% upside potential.
