Oil stock BP (NYSE:BP) is on a roll today. It turned in a fantastic earnings report and has some exciting plans for the near term. All of that together sent BP shares up nearly 6% in Tuesday afternoon’s trading. The news was enough to get BP to a three-month high as BP CEO Murray Auchincloss spelled out what the next few months would look like at BP.
One of the biggest things Auchincloss noted was that BP would “…pragmatically adapt to what’s happening with demand in society.” Auchincloss also called for BP to focus on “…the highest return and highest value projects.” Okay, nothing wrong there…though things did get odd when Auchincloss revealed that BP’s move away from oil would indeed continue. It plans to reduce oil and gas production by 25% and also grow its renewable/low-carbon business through the rest of the 2020s.
What Is the Target Price for BP?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BP stock based on four Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 0.36% rally in its share price over the past year, the average BP price target of $43.93 per share implies 21.19% upside potential.
