BP p.l.c., the Energy sector company, was revisited by a Wall Street analyst today. Analyst Christopher Kuplent from Bank of America Securities downgraded the rating on the stock to a Sell and gave it a p375.00 price target.
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Christopher Kuplent has given his Sell rating due to a combination of factors impacting BP p.l.c.’s financial outlook. A significant reason for this rating is the reduction in the Brent oil price forecast from $70 to $60 per barrel, which has led to a more than 20% decrease in BP’s 2026 earnings estimates, positioning them over 5% below the consensus. This adjustment has also resulted in a lowered price objective for BP’s stock, from 440p to 375p.
Another factor contributing to the Sell rating is BP’s relative valuation, which appears less favorable compared to its better-funded peers. The company’s ongoing $20 billion asset disposal plan, expected to span from 2025 to 2027, is anticipated to dilute cash flow quality and reduce underlying free cash flow by approximately 10%. Additionally, the disposals are expected to result in a lighter and shorter-life free cash flow, raising investor concerns about the quality of BP’s remaining cash flows. These strategic challenges, coupled with an unappealing free cash flow yield relative to competitors like Shell and TotalEnergies, underpin Kuplent’s decision to rate BP’s stock as a Sell.
Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BP in relation to earlier this year.