BP: Jefferies upgrades to 'buy'
(CercleFinance.com) - Jefferies has upgraded BP from "hold" to "buy," after raising its Brent forecast for the second half of the year.
"This is the first time our team has ever upgraded a stock to buy when the risk of an imminent dividend cut was possible, but we believe a cut of 65% is already priced into the stock," the broker wrote in a note to clients.
Despite "precarious" oil market fundamentals, Jefferies said that it has raised its second-half Brent forecast to 43 dollars per barrel, from 37 dollars previously.
It also raised its target price for the stock from 24.9 dollars to 26.9 dollars.
BP shares were trading up 0.6% on the London Stock Exchange on Thursday.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"This is the first time our team has ever upgraded a stock to buy when the risk of an imminent dividend cut was possible, but we believe a cut of 65% is already priced into the stock," the broker wrote in a note to clients.
Despite "precarious" oil market fundamentals, Jefferies said that it has raised its second-half Brent forecast to 43 dollars per barrel, from 37 dollars previously.
It also raised its target price for the stock from 24.9 dollars to 26.9 dollars.
BP shares were trading up 0.6% on the London Stock Exchange on Thursday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.