In a report released on April 29, Jason Gabelman from TD Cowen maintained a Hold rating on BP p.l.c. (BP – Research Report), with a price target of p390.00.
Jason Gabelman has given his Hold rating due to a combination of factors affecting BP p.l.c. The company’s gas segment results were weaker than anticipated, primarily due to trading and tax issues, which are expected to normalize. Additionally, BP’s financial strategy heavily relies on divestments to maintain competitive distributions and a healthy balance sheet. Despite market uncertainties, there is strong interest in BP’s assets for sale, which is crucial for the company’s financial framework.
BP’s net debt increased significantly, indicating that while the company could afford buybacks, the amount would be less than previously guided due to weakened commodity prices. The company has increased its divestment target for FY25, reflecting a strategic move to bolster its financial position. However, uncertainties in commodity pricing and the necessity for divestments to support buybacks contribute to the Hold rating, as these factors present both opportunities and risks for BP’s financial outlook.
According to TipRanks, Gabelman is a 4-star analyst with an average return of 4.9% and a 50.00% success rate. Gabelman covers the Energy sector, focusing on stocks such as TotalEnergies, BP, and Phillips 66.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a p400.00 price target.