UBS has reiterated an upbeat stance on BP PLC (LON:BP.) ahead of a medium/long term strategy update from the oil giant next Tuesday, February 28
In a note to clients, the Swiss bank’s analysts pointed out that this “will be the first formal strategy event since March 2014 which itself signalled the emergence from stabilising the company post-Macondo.”
They said: “Investors want a clear performance and financial target framework.
“The changes at 4Q16, raising 2017 capex and cash neutrality guidance negatively surprised and some reassurance over medium term objectives is required.”
The analysts added: “We expect a continued commitment to the current dividend, with a clear target of returning to a cash payout (likely a combination of scrip dividend and buyback) as soon as possible.”
They said they also expect some reassurance that the “creeping cost” of the Macondo well disaster in the US Gulf of Mexico is coming to an end.
UBS has a ‘buy’ rating and 525p price target on BP shares.
In early London trading, the stock edged 0.4% lower, down 1.65p at 448.75p, reflecting a weaker oil price.