👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

BP stock has “longevity” and worth a lot more, says Barclays

Published 11/10/2023, 14:43
Updated 11/10/2023, 15:41
© Reuters.  BP stock has “longevity” and worth a lot more, says Barclays
UK100
-
BP
-

Proactive Investors - BP PLC's (LSE:LON:BP.) shares are worth almost double their current price, Barclays (LON:BARC) says, following the oil supermajor's latest capital markets update.

Oil and gas equity analysts at the bank said on Wednesday that they expect BP’s share price would represent fair value at 1000p, saying they expect a positive reaction to the company's capital markets event in Denver, of which today is the second day.

BP’s shares are currently trading at a price per share of 526.30p.

During the event, the FTSE 100-listed giant lifted its target for group earnings before interest, tax, depreciation and amortisation (EBITDA) for 2030 to a range of US$53 billion to US$58 billion.

The oil company revised its earnings target due to expecting better performance in its hydrocarbon business, which it now expects to deliver US$41 billion to US$44 billion by 2030.

Analysts emphasised the company’s commitment to “longevity” and growth in the upstream segment to the end of the decade and beyond.

BP now expects to grow oil & gas production through to 2025 and liquids to 2027, and to sustain that growth until 2030 and "well into the next decade".

In the UK, Prime Minister Rishi Sunak’s delay to the proposed ban on petrol cars is likely to shore up the market for oil beyond the slated 2030, when the ban was due to be introduced, to later in 2035.

“We continue to see material upside in the stock to 1000p per share,” Barclays’ analysts said of oil major BP.

“The message here is clear. This is not a business in decline instead having meaningful terminal value. In terms of resources bp disclosed it has 36bn or resources in the upstream, of which 7bn boe are proves and 18bn boe are included in the plan.”

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.