BP after Its 2Q15 Earnings: Wall Street Analysts’ Forecasts



What are Wall Street’s forecasts for BP?

In this series, we’ve seen that BP’s (BP) stock has reacted positively following its latest-quarter earnings report. Now let’s look at Wall Street analysts’ forecasts for BP following its 2Q15 earnings release.

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Consensus rating for BP

Approximately 20% of analysts tracking BP rate it a “buy” or some equivalent. Approximately 67% rate the company a “hold” or an equivalent, while 13% of the analysts recommend a “sell.”

In comparison, approximately 32% of analysts tracking ExxonMobil (XOM) rate it a “buy” or some equivalent, and approximately 45% of analysts tracking Cenovus Energy (CVE) rate it a “buy.” Approximately 64% of analysts tracking Total’s (TOT) stock rate it a “buy.” ExxonMobil is 15.7% of the Energy Select Sector SPDR (XLE).

Analysts’ recommendations

Here are the Wall Street analysts’ target prices for BP following its 2Q15 financial results. When it comes to individual recommendations, Cowen & Company, part of Cowen Group (COWN), gave BP a target price of $43. BP currently trades near $37, implying a 15% return for the next 12 months.

Bernstein, an independent research firm, gives BP a target price of ~$44, which implies an 18% return over the next 12 months.

Investment bank Goldman Sachs (GS) gives BP one of the lowest target prices. It has a 12-month target of ~$35 for BP. This implies about a -5% return from BP over the next 12 months.

Oppenheimer & Co., another investment bank, gave BP a one-year target price of $50—one of the highest target prices. This implies a 34% return over the next 12 months.

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