BP PLC (BP:LSE) Analyst’s are Bullish with a Strong Buy rating

JP Morgan & Company raises BP PLC’s target from GBX 500 to GBX 530 at an overweight rating

Based on the BP PLC (bp stock dividend) stock forecasts from 8 analysts, the average analyst target price for BP PLC (bp stock dividend) is GBX 486.88 over the next 12 months. BP PLC’s (bp stock dividend) average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of BP PLC is Slightly Bearish, based on 5 positives and 7 negative signals. At the last closing, BP PLC’s stock price was GBX 373.10. BP PLC’s stock price has changed by -13.45% over the past week, -31.30% over the past month and +27.66% over the last year.

BP plc operates in the energy sector globally. Its segments are Rosneft, Oil Production & Operations, Customers & Products, and Gas & Low Carbon Energy. The company’s headquarters are in London, United Kingdom, where it was established in 1908.

 

What we like:

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

 

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price-to-earning basis and is above the sector median.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on a free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector