Scotiabank downgraded BP to Sector Perform from Outperform with a price target of $36, down from $42. In a lower oil price environment, BP’s balance sheet will face more questions regarding its large payout commitment of $7B of buybacks in 2025, the analyst tells investors in a research note. The firm says that compared to the other supermajors, BP’s balance sheet is not as strong. In addition, in view of the potential oversupply in the global liquefied natural gas market between 2026 and 2028, BP’s trading performance may not be able to repeat their robust 2023 level, and relative to their peers, trading represents a larger contributor to its bottom line, says Scotiabank.
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