Christopher Kuplent, an analyst from Bank of America Securities, reiterated the Hold rating on BP p.l.c. (BP – Research Report). The associated price target was lowered to p400.00.
Christopher Kuplent has given his Hold rating due to a combination of factors, primarily revolving around BP’s financial performance and strategic decisions. The company’s recent quarterly results have not met expectations, leading to further reductions in earnings estimates. Additionally, BP’s balance sheet shows a lack of resilience when compared to its peers, such as Shell and TotalEnergies, which are both rated as Buy.
Kuplent also points out that BP’s recent decision to cut its share buyback program is not unexpected, but it raises concerns about the company’s ability to maintain financial stability in a challenging commodity market. The company’s gearing ratio is notably higher than that of Shell, and its breakeven oil price remains elevated. These factors, combined with the company’s cash flow challenges and the need for asset disposals, contribute to the Hold rating, as BP appears mispriced relative to its competitors.