Update shared on06 Aug 2025
Fair value Increased 2.38%Buoyed by stronger-than-expected margins and improved outlook for core refining and integrated oil operations, analysts have raised BP’s consensus price target from £4.24 to £5.37.
Analyst Commentary
- Bullish analysts are increasing earnings estimates for BP driven by stronger-than-expected margins, particularly in the most recent quarter.
- Upward price target revisions reflect a more favorable outlook for BP's core operating segments, especially in refining and integrated oil operations.
- Recent target adjustments are part of a broader revaluation across U.S. large-cap energy and E&P companies, impacting BP alongside peers.
- Maintained neutral ratings suggest optimism about near-term earnings but caution regarding broader sector risks or stock-specific overhangs.
- Updates incorporate higher anticipated Q2 performance, supporting a modestly higher valuation framework for BP shares.
What's in the News
- BP announced a significant oil and gas discovery at the Bumerangue prospect offshore Brazil, marking its tenth exploration success in 2025, with further appraisal activities planned.
- New partnership with WEX expands bp’s U.S. fuel card offering, providing fleet drivers with fuel savings, greater acceptance, and enhanced controls across bp’s network.
- Castrol lubricants division sale progresses with multiple suitors, including private equity firms and energy majors; valuations have slipped, and activist shareholder Elliott continues to pressure for bold changes.
- Shell was rumored to be in talks to acquire BP, causing share volatility, but Shell and BP denied any active takeover discussions, though BP remains perceived as a potential target amid poor performance.
- BP commenced a large share buyback program, authorized to repurchase nearly 10% of outstanding shares, aiming to boost shareholder returns and reduce net share capital.
Valuation Changes
Summary of Valuation Changes for BP
- The Consensus Analyst Price Target has significantly risen from £4.24 to £5.37.
- The Consensus Revenue Growth forecasts for BP has significantly risen from -2.3% per annum to -2.1% per annum.
- The Future P/E for BP has fallen from 11.09x to 10.52x.
Disclaimer
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