UPDATE: Canaccord Genuity Downgrades BP to Hold on Limited Upside, Long-Term Outlook
Canaccord Genuity downgraded BP p.l.c. (NYSE: BP) from Buy to Hold with a reiterated $46.00 price target.
Canaccord Genuity noted, "We see cash flow recovering strongly over 2013-15 as production recovers and high-margin volumes come on stream. However, we are less convinced over longer term growth potential. Our current SoP valuation on BP is 570p/share ($54/ADR), 28% above the current share price which is slightly below average for the group. BP's 2014E EV/DACF multiple of 4.4x is slightly below the group average (apart from XOM). The stock offers a 13E prospective dividend yield of 5.4%; this compares well with the US big-caps but is broadly in line with Shell. Apart from a one-off share buyback to offset the Rosneft deal dilution, we forecast buybacks of around $2bn pa in the next few years, but mostly to offset scrip dividend dilution."
BP p.l.c. closed at $40.79 on Thursday.
Latest Ratings for BP
|Dec 2016||Independent Research||Upgrades||Hold||Buy|
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