BP PLC (LSE:BP.) shares are still not remotely up with events even after a strong rally in the wake of last week’s fourth-quarter trading update.
That at least is the verdict of Barclays Capital, which reckons BP is worth £10 a share – an 80% premium to the current price.
Even at that level, the oil giant’s stock is still only trading on a forward (2025) enterprise multiple of less than three times.
In a brief note on the BP trading update, the investment bank said: “The increase in capex was welcomed by the market with recognition emerging of the longevity of upstream cashflows.”
In early trade, the shares were marking time at 555p each. The consensus price target is 596p based on research from 23 brokers and banks, 15 of which are positive on BP stock.