Market Overview

UPDATE: Canaccord Genuity Downgrades BP to Hold on Limited Upside, Long-Term Outlook

Share:
Related BP
BP Explores Pipeline Asset Sale To Form MLP & Make It Public
10 Reasons To Own FleetCor During The Second Half Of 2017
Oslo Asset Management ASA Buys Gulfport Energy Corp, Rice Midstream Partners LP, Petroleo ... (GuruFocus)

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

DateFirmActionFromTo
Jul 2017Societe GeneraleDowngradesBuyHold
Apr 2017CitigroupDowngradesBuyNeutral
Dec 2016UBSUpgradesNeutralBuy

View More Analyst Ratings for BP
View the Latest Analyst Ratings

Posted-In: Canaccord GenuityAnalyst Color Downgrades Analyst Ratings

 

Related Articles (BP)

View Comments and Join the Discussion!