BP: one of Berenberg's top picks in the oil sector
(CercleFinance.com) - Berenberg started its coverage of major oil companies on Tuesday, with BP featuring as one of its top picks, saying that the stars are aligning for the energy sector.
The German broker thinks lower costs, rising production and increasing commodity prices are resulting in the sector having the highest free cash flow since 2006/2007.
In a note to clients, Berenberg initiates its coverage of eight global oil majors, with average upside potential of 17% relative to target prices, believing the sector will generate an 8.1% FCF yield in 2019 at an oil price of 82.5 dollars per barrel.
Its top picks are Total, Repsol, and BP for which it has a "buy" rating and a target price of 665 pence.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The German broker thinks lower costs, rising production and increasing commodity prices are resulting in the sector having the highest free cash flow since 2006/2007.
In a note to clients, Berenberg initiates its coverage of eight global oil majors, with average upside potential of 17% relative to target prices, believing the sector will generate an 8.1% FCF yield in 2019 at an oil price of 82.5 dollars per barrel.
Its top picks are Total, Repsol, and BP for which it has a "buy" rating and a target price of 665 pence.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.