BP: BarCap expects shares to re-rate

(CercleFinance.com) - BP remains Barclays Capital's "top pick" in the European oil sector, with the stock having 27% upside potential relative to the investment bank's target price of 675 pence.


"We expect it to become increasingly evident over the coming 12 months that BP can deliver a material and sustained improvement in free cash flow," BarCap says, citing the oil major's project start-ups.

"As investor confidence in the ability of BP to sustain and grow that dividend improves we expect to see the shares re-rate," the British bank adds, reiterating its "overweight" rating on the shares.

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