Jefferies analyst Giacomo Romeo downgraded BP (BP) to Hold from Buy with a price target of $29, down from $40.80. The firm reduced fiscal 2025 and 2026 oil price forecasts by $10 per barrel to $65, reflecting increasingly oversupplied balances from Q4 due to increased supply from OPEC+ and an uncertain demand outlook. It downgraded BP to Hold, continuing to favor names that can sustain buyback programs while keeping leverage under control. Jefferies is concerned by BP’s elevated leverage in a weaker oil price environment, its ability to sustain a share buyback program if oil prices fall to $60 or below, and sees execution risks around the $20B divestment plan due to the uncertain global macro environment.
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