Zacks Research Upgrades BP (NYSE:BP) to Strong-Buy

Key Points

• Zacks Research upgraded BP to “strong buy” from “hold,” while analysts overall rate the stock “Moderate Buy” with an average price target of $46.59.
• BP reported a quarterly earnings beat, with EPS of $2.22 versus the $1.87 consensus, while revenue rose 106.1% year over year to $69.11 billion.
• BP shares opened at $45.68, up 1.8%, amid positive developments including potential Uzbekistan drilling growth and investor interest in its assets, though the prolonged Whiting refinery labor lockout remains a risk.

BP (NYSE:BP - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Tuesday, Zacks reports.

Other equities analysts have also recently issued research reports about the stock. Morgan Stanley restated an "overweight" rating on shares of BP in a research report on Friday, September 4th. TD Cowen upped their target price on BP from $40.00 to $41.00 and gave the company a "hold" rating in a research note on Thursday, July 16th. Wells Fargo & Company lowered their target price on BP from $54.00 to $48.00 and set an "equal weight" rating on the stock in a report on Wednesday, August 5th. Royal Bank Of Canada raised BP from a "sector perform" rating to an "outperform" rating in a report on Monday, May 11th. Finally, Freedom Capital raised BP from a "strong sell" rating to a "hold" rating in a research note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, BP presently has an average rating of "Moderate Buy" and an average price target of $46.59.

BP Stock Up 1.8%

Shares of BP stock opened at $45.68 on Tuesday. BP has a one year low of $32.72 and a one year high of $48.27. The company has a market cap of $119.65 billion, a P/E ratio of 22.28, a PEG ratio of 0.57 and a beta of 0.15. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.95 and a current ratio of 1.27. The firm has a fifty day moving average of $42.40 and a two-hundred day moving average of $42.89.

BP (NYSE:BP - Get Free Report) last issued its earnings results on Monday, August 3rd. The oil and gas exploration company reported $2.22 earnings per share for the quarter, beating the consensus estimate of $1.87 by $0.35. The business had revenue of $69.11 billion for the quarter, compared to the consensus estimate of $57.89 billion. BP had a net margin of 2.49% and a return on equity of 16.63%. The business's quarterly revenue was up 106.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.90 earnings per share. On average, analysts forecast that BP will post 6.45 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of BP. Financial Life Planners acquired a new stake in shares of BP in the first quarter worth approximately $39,000. Triumph Capital Management acquired a new position in BP during the third quarter worth approximately $43,000. WFA of San Diego LLC purchased a new position in BP during the second quarter worth approximately $46,000. Gill Capital Partners LLC boosted its holdings in shares of BP by 53.2% in the 2nd quarter. Gill Capital Partners LLC now owns 1,376 shares of the oil and gas exploration company's stock valued at $51,000 after purchasing an additional 478 shares during the last quarter. Finally, Community Bank N.A. grew its stake in shares of BP by 237.0% during the 2nd quarter. Community Bank N.A. now owns 1,685 shares of the oil and gas exploration company's stock valued at $62,000 after buying an additional 1,185 shares during the period. Institutional investors and hedge funds own 11.01% of the company's stock.

BP News Roundup

Here are the key news stories impacting BP this week:

• Positive Sentiment: BP was added to several Zacks Rank #1 (Strong Buy) lists covering value, growth, momentum and income stocks. The ratings reflect favorable earnings-estimate trends and BP’s relatively attractive valuation, supporting continued investor interest. New Strong Buy Stocks for September 9th
• Positive Sentiment: Analysts highlighted BP as an appealing way to gain exposure to high oil prices without paying a premium valuation. Its recent earnings beat—with quarterly EPS of $2.22 versus the $1.87 consensus—and sharply higher revenue provide additional support for the bullish view. Why BP Is One of the Best Oil Stocks to Buy Right Now
• Positive Sentiment: BP and SOCAR received approval to advance drilling activity in Uzbekistan, adding a potential longer-term exploration and production growth opportunity. BP and Socar get green light for Uzbekistan drilling push
• Neutral Sentiment: Shell agreed to acquire a 30% interest in Conifer, a BP-operated deepwater prospect in the Gulf of Mexico. The transaction may validate BP’s asset and reduce its capital exposure, although comparisons emphasize Shell’s stronger cash flow and could limit BP’s relative appeal. Could Shell’s Superior Cash Flow Make It a Better Bet Than BP?
• Neutral Sentiment: Potential buyers are reportedly evaluating BP’s North Sea operations. A sale could generate cash and simplify the portfolio, but reports remain preliminary and the value and timing of any transaction are uncertain. BP North Sea Operations Garner Interest From Potential Buyers
• Negative Sentiment: A labor lockout at BP’s Whiting refinery is approaching six months, prolonging disruption and increasing the risk of higher costs, lost production or an extended dispute. BP Whiting refinery lockout nears six months

About BP

BP p.l.c. is a global integrated energy company headquartered in London, England. Its operations span the energy value chain, including exploration and production of oil and natural gas, refining, fuel marketing, energy trading and transportation. BP also produces and markets lubricants through its Castrol brand and supplies fuels through retail networks operating under brands such as BP, Aral and ampm.

The company has operations and business relationships across multiple regions, including the Americas, Europe, the Middle East, Africa and Asia-Pacific.

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