Scotiabank upgrades BP to Outperform on valuation gap to peers

Scotiabank upgraded BP (BP) to Outperform from Sector Perform with a price target of $42, up from $34. The believes the shares will narrow the current valuation gap relative to BP’s European supermajor peers. The Bumerangue Block discovery could transform the company’s long-term upstream profile, which is one of the biggest investor concerns, the analyst tells investors in a research note. The firm sees BP’s cost reduction efforts picking up, Bumerangue drilling results and the stock’s “attractive” valuation serving as share catalysts.