BP: Berenberg reiterates 'buy' rating and 665 pence target

(CercleFinance.com) - Berenberg is maintaining its "buy" rating on BP, with a target price of 665 pence, saying that a recent field trip confirmed the stock's "attractive" outlook.


In a note to clients, the German broker pointed out that BP has updated the market on its field trip to Oman, and kept its target of generating 14 billion-15 billion dollars of free cash flow in 2021 from the upstream business, based on crude oil at 55 dollars per barrel.

Also, BP believes that in a growth scenario it has the capacity to grow pre-tax FCF from 2021 levels by a further 40%-50% by 2025, using strong opportunities in the Gulf of Mexico, Mauritania and Senegal and Trinidad, it said.

In a nutshell, Berenberg sees BP as "being well placed to deliver accretive growth, and view the valuation as attractive," it said in the note.

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