Citi Downgrades BP To Neutral

In a research note out Tuesday, Citi analysts downgraded shares of

to Neutral, citing valuation concerns and uncertainty. In the note, the analysts state: "We think the market now better reflects the inherent value in BP. A good-news story around a self-help agenda, narrowing Russian discount rates and a favourable Macondo Phase II ruling have all driven the equity story in recent months. Although these elements may continue to play out, we think they need to be balanced against the risks; specifically on narrowing growth optionality and on Macondo where we think the recent decision to put Alabama OPA under jury trial now creates more uncertainty. We downgrade from Buy to Neutral, with an unchanged price target (455p/share)." Shares of BP closed Monday at $41.23 and were up about 0.65 percent in Tuesday's premarket.