Analysts’ Recommendations for BP before 1Q16 Earnings



What do analysts recommend for BP?

So far in this series, we’ve examined BP’s 1Q16 estimates, segmental outlook, stock performance, capex, costs, and divestment plans ahead of its earnings release on April 26, 2016. In this part of the series, we’ll look at the ratings of analysts covering the stock.

The above table shows that three of the ten firms surveyed have rated BP (BP) a “buy” or “outperform.” The highest 12-month target price for BP is $43, indicating a 40% gain from current levels. The remaining seven firms have rated BP a “hold.” The average 12-month target price for BP is $36, indicating a 16% gain from current levels. None of the above firms have given BP a “sell” rating. The lowest 12-month target price for BP is $28, indicating a 9% loss from current levels.

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The highest target price came from Evercore ISI, whereas the lowest target price came from Tudor, Pickering, Holt & Co. Firms like Evercore ISI and Scotia Howard Weil have positive recommendations for BP with target prices of $43 per share and $39 per share, respectively. On the other hand, Goldman Sachs, Raymond James, and Edward Jones have given “neutral,” “hold,” and “market perform” ratings for BP.

Analysts’ recommendations for BP’s peers

BP’s (BP) peers Statoil (STO), ENI (E), and Petróleo Brasileiro Petrobras (PBR) have received “buy” ratings from 33%, 33%, and 6% of analysts surveyed, respectively. If you are looking for global, broad-based exposure to energy sector stocks, you might consider the iShares Global Energy ETF (IXC). This ETF has ~57% exposure to integrated energy sector stocks, ~18% exposure to oil and gas exploration and production stocks, ~6% exposure to refining and marketing stocks, and ~8% exposure to oil and gas storage and transportation sector stocks.


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