leadf
logo-loader
viewBP PLC
(
LSE:BP.
)

BP downgraded as outlook pessimism will be hard to shift says HSBC

The broker can’t see the market’s perception of the problems changing quickly

BP PLC -
Can it replace its oil earnings?

BP PLC (LON:BP) has been downgraded by HSBC even though the broker believes the greener policies introduced by CEO Bernard Looney can succeed.

Investor pessimism over the future is overdone, says the broker, especially about the oil giant’s ability to find its place in a low-emissions world.

But the broker can’t see the market’s perception of the problems changing quickly, so it has trimmed its share price target to 360p and cut its rating to 'hold' from 'buy'.

While the oil price rally has eased concerns over this year’s numbers, market worries over the longer term have not gone away.

HSBC believes the numbers can work as the shift in emphasis will see cashflow per barrel rise, capex fall and the consumer/convenience segment grow to replace forgone oil and gas income.

But buybacks haven’t moved the dial for the share price and with the improvement in cashflow this year already priced in, the better looking longer-term financials aren’t likely to do it either says HSBC, hence the downgrade.

BP shares rose  0.1% to 324p today.

Quick facts: BP PLC

Follow
LSE:BP.

Price: 304.65 GBX

Market Cap: £61.19 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Hochschild Mining reveals 'profitable' PEA on its heavy rare earths project...

Hochschild Mining Head of Investor Relations Charles Gordon joined Proactive New York to discuss the Peru-based gold and silver miner's recent developments within its heavy rare earths project, recently renamed Aclara. Gordon says the group recently revealed a preliminary economic assessment...

14 hours, 30 minutes ago

2 min read