BP downgraded to Reduce from Hold at HSBC

HSBC analyst Kim Fustier downgraded BP (BP) to Reduce from Hold with a price target of $35.10, down from $38.10. BP is making the right strategic moves but the payoff is “years away,” the analyst tells investors in a research note. The firm believes the buyback suspension leaves BP at the sector’s lowest distribution yield, with little forward visibility and “undifferentiated” medium-term growth. HSBC sees few near-term positive catalysts to drive a re-rating of the shares.