Analyst Maintains Sell on BP Amid Constrained Financial Flexibility and Upstream Challenges, Raises Price Target to 460 GBp

Bank of America Securities analyst Christopher Kuplent reiterated a Sell rating on BP p.l.c. today and set a price target of p460.00.

Christopher Kuplent has given his Sell rating due to a combination of factors, including BP’s challenging upstream outlook and constrained financial flexibility. He highlights that BP’s U.K. North Sea portfolio, currently around 100 kbpd and projected to halve by 2030, represents a small share of group volumes yet absorbs a disproportionate share of capital and rising decommissioning costs, limiting value creation even if tax-loss benefits are considered.

Christopher Kuplent’s rating is based on concerns that BP’s balance sheet and capital allocation leave it less competitive on shareholder returns versus peers. He notes that the suspension of buybacks, high debt above $50 billion, and a strategic pivot back to oil and gas growth all reduce room for further capex savings, implying slower progress toward peer gearing levels and constraining BP’s ability to match rival cash distributions despite a revised price target of 460 GBp.

Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BP in relation to earlier this year.