BP p.l.c. (NYSE:BP) Stock Has Consensus Target Price of $48.44 According to Analysts

Key Points

• Analyst sentiment is moderately bullish: Twenty-seven analysts give BP a consensus “Moderate Buy” rating, with 16 buys and one strong buy. The average 12-month price target is $48.44, while Wells Fargo recently raised its target to $57.
• BP reported strong quarterly results: The company posted earnings of $2.22 per share versus the $1.87 consensus estimate, while revenue rose 106.1% year over year to $69.11 billion.
• Investors face both income potential and execution risks: BP increased its quarterly dividend to $0.5196, representing an annualized yield of about 4.6%, while its portfolio simplification and capital-allocation strategy could support returns. However, high debt, uncertainty over share buybacks and oil-market volatility remain concerns.

BP p.l.c. (NYSE:BP - Get Free Report) has received an average recommendation of "Moderate Buy" from the twenty-seven research firms that are presently covering the company, Marketbeat.com reports. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $48.44.

A number of analysts have commented on BP shares. Wells Fargo & Company upgraded shares of BP from an "equal weight" rating to an "overweight" rating and boosted their price target for the company from $48.00 to $57.00 in a research note on Wednesday, September 30th. Citigroup began coverage on shares of BP in a report on Thursday, October 1st. They set a "buy" rating for the company. TD Cowen restated a "buy" rating on shares of BP in a report on Monday, September 28th. JPMorgan Chase & Co. upgraded BP from a "neutral" rating to an "overweight" rating in a research note on Wednesday, September 23rd. Finally, Weiss Ratings raised BP from a "hold (c-)" rating to a "hold (c)" rating in a report on Wednesday, August 5th.

Key BP News

Here are the key news stories impacting BP this week:

• Positive Sentiment: BP is simplifying its portfolio by selling non-core assets and concentrating capital on higher-return projects. The strategy is intended to improve margins, cash flow and shareholder value, potentially supporting the stock if execution improves financial performance. BP Targets Higher Returns Through Portfolio Simplification Focus
• Positive Sentiment: Zacks featured BP as its “Bull of the Day” and included it among its Rank #1, or “Strong Buy,” growth stocks. The bullish view reflects strong oil-sector conditions, price momentum and rising earnings estimates. Bull of the Day: BP plc
• Positive Sentiment: BP was also identified as one of several stocks combining strong relative price momentum with improving earnings expectations heading into the final quarter, reinforcing the recent bullish technical and fundamental backdrop. 5 Stocks Riding Strong Price Momentum Into the Final Quarter
• Neutral Sentiment: Broader market coverage cited oil prices above $100 as supportive for energy companies, but also highlighted rising borrowing costs, currency moves and political uncertainty that could increase volatility for BP and the wider market. The Zacks Analyst Blog Highlights Palantir Technologies, BP and Quanta
• Negative Sentiment: CEO Meg O’Neill said BP has written off too much value, remains too indebted and needs to make better use of investor capital. Her refusal to provide a timeline for restarting share buybacks may weigh on investors seeking near-term capital returns. BP CEO Meg O'Neill vows to reshape company's capital use

BP Stock Up 0.9%

BP stock opened at $45.03 on Wednesday. The stock's 50 day simple moving average is $43.93 and its 200 day simple moving average is $43.49. The company has a market cap of $117.96 billion, a P/E ratio of 21.97, a price-to-earnings-growth ratio of 0.46 and a beta of 0.20. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.95 and a current ratio of 1.27. BP has a fifty-two week low of $32.72 and a fifty-two week high of $48.27.

BP (NYSE:BP - Get Free Report) last released its quarterly earnings data on Monday, August 3rd. The oil and gas exploration company reported $2.22 EPS for the quarter, beating the consensus estimate of $1.87 by $0.35. BP had a return on equity of 16.63% and a net margin of 2.49%.The firm had revenue of $69.11 billion during the quarter, compared to the consensus estimate of $57.89 billion. During the same quarter in the previous year, the company posted $0.90 earnings per share. The company's quarterly revenue was up 106.1% on a year-over-year basis. On average, research analysts expect that BP will post 7.28 earnings per share for the current fiscal year.

BP Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 18th. Investors of record on Friday, August 14th were given a $0.5196 dividend. This represents a $2.08 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date of this dividend was Friday, August 14th. This is an increase from BP's previous quarterly dividend of $0.4992. BP's payout ratio is currently 100.49%.

Hedge Funds Weigh In On BP

Hedge funds have recently bought and sold shares of the company. Alyeska Investment Group L.P. lifted its position in shares of BP by 48.8% during the second quarter. Alyeska Investment Group L.P. now owns 2,830,923 shares of the oil and gas exploration company's stock valued at $104,603,000 after purchasing an additional 928,617 shares in the last quarter. Van ECK Associates Corp grew its position in BP by 290.2% in the 2nd quarter. Van ECK Associates Corp now owns 2,049,151 shares of the oil and gas exploration company's stock worth $75,716,000 after purchasing an additional 1,524,048 shares in the last quarter. Russell Investments Group Ltd. increased its stake in BP by 15.8% in the 2nd quarter. Russell Investments Group Ltd. now owns 1,410,714 shares of the oil and gas exploration company's stock valued at $52,307,000 after buying an additional 192,211 shares during the last quarter. Kahn Brothers Group Inc. bought a new position in shares of BP during the 2nd quarter worth approximately $23,094,000. Finally, Readystate Asset Management LP boosted its stake in shares of BP by 322.4% in the 2nd quarter. Readystate Asset Management LP now owns 619,670 shares of the oil and gas exploration company's stock worth $22,897,000 after buying an additional 472,974 shares during the last quarter. 11.01% of the stock is owned by hedge funds and other institutional investors.

About BP

BP p.l.c. is a global integrated energy company headquartered in London, United Kingdom. Its operations span the exploration, development and production of oil and natural gas, as well as the processing, refining, transportation and marketing of energy products.

Through its businesses, BP supplies fuels for road transportation, aviation and marine use, along with lubricants marketed under the Castrol brand. The company also operates retail fuel and convenience locations and provides energy products and services to commercial and industrial customers.

BP has expanded its activities beyond traditional hydrocarbons to include lower-carbon businesses such as renewable power, bioenergy, electric-vehicle charging and hydrogen.

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