U.K.-based oil and gas firm BP Plc (BP) has signed an agreement to take complete ownership of its joint venture (JV) with Kentucky-based gasoline and convenience store operator Thorntons. BP will acquire the majority stake it does not own in energy-focused investment firm ArcLight Capital Partners.
The acquisition is likely to boost BP’s presence in the U.S. fuels and convenience retail sector, making it a leading convenience operator in the Midwest with 208 stores spread across six states.
The Chairman and President of BP America, David Lawler, said, “Incorporating Thorntons into our business combines their customer-first culture with our existing U.S. retail network and will help us deliver our convenience strategy of offering customers what they want, where and when they want it.”
Following the completion of the acquisition, BP plans to retain and build on the Thorntons brand. (See BP stock chart on TipRanks)
Two months ago, Mizuho Securities analyst Daniel Boyd reiterated a Hold rating on the stock and raised the price target from $30 to $33 (29% upside potential).
In a research note to investors, the analyst said, “The firm’s prior bull case of $70 per barrel of Brent is now the base case due to stronger-than-expected demand and an increasing likelihood that global demand hits pre-pandemic levels by the fourth quarter.”
Overall, the stock has a Moderate Buy consensus based on 2 Buys and 3 Holds. The average BP price target of $31.67 implies 23.8% upside potential. The company’s shares have gained 20.2% year-to-date.
According to TipRanks’ Smart Score rating system, BP scores an 8 out of 10, suggesting that the stock is likely to outperform market averages.
Related News:
A Look at Tauriga Sciences’ Risk Factors Post FY2021 Results
Citigroup to Sell Venezuela Operations to BNC
Microsoft Extends Partnership with NEC Corporation
