SocGen upgrades BP to 'buy'
BP
524.80p
16:40 26/04/24
Analysts at Societe Generale upgraded their recommendation on stock of BP from 'hold' to 'buy', citing fading concerns regarding the Deepwater Horizon disaster.
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16:59 26/04/24
In parallel, strong growth in volumes, earnings and a seven-fold rise in cash-flows had de-risked the oil major's 2021 cash-flow targets, they said, in turn raising "confidence in its capacity to grow shareholder distribution".
And there was still room for the roughly 6% sustainable dividend yield to grow, they said.
Furthermore, the shares were trading at an approximately 7% discount versus competitor Shell in terms of its EV/DACF multiple, according to SocGen.
"This is a high quality undervalued stock, hit by the oil price correction to $64/bbl, but whose portfolio has been reset for material free cash generation at $55/bbl."