BP downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded BP to Underweight from Neutral with a price target of 550 GBp, down from 615 GBp. The company’s “substantial” Q3 miss follows a soft Q2, the analyst tells investors in a research note. The firm says this year is revealing BP’s cash flows as increasingly leveraged to wider standard deviation variables – notably trading and working capital. JPMorgan believes the second order has emerged as a weakening risk/reward on future cash return, particularly as volatility moderates across parts of the energy complex.