BP Named ‘Stock of the Month’ as Analyst Cites Strategic Reset and Oil Price Tailwinds

BP (LON: BP.) has been named Edison’s “stock of the month” for April, with analysts at the firm pointing to a powerful combination of strategic change, stronger commodity prices and improving financials that they say leave the shares looking undervalued.

Edison stated that BP’s renewed focus on hydrocarbons, alongside “a strong financial framework to improve balance sheet and returns,” has created a self-help story that is gaining traction.

The firm noted the more than 5% activist stake held by Elliott Management, mentioning that it is “likely to ensure execution at bp remains in the spotlight.”

The broker argued that BP fits squarely into its HALO rotation theme (“heavy assets, low obsolescence”) and added that near-term performance should benefit from “approximately $100 oil, higher gas prices and stronger refining margins” following the Middle East conflict.

BP “appears underpriced given the strategic improvement story overlayed on a backdrop of high oil prices,” Edison wrote.

BP has reversed its earlier net-zero strategy and now plans to spend $10 billion annually on upstream development through 2027, targeting 2.5 million barrels of oil equivalent per day by 2030. Edison flagged that Brent’s surge above $100 a barrel contrasts sharply with consensus forecasts based on $65, suggesting “a material improvement” to 2026 earnings if prices hold.

Despite a sharp rebound in the share price, Edison argued BP still trades at a significant discount to U.S. majors on spot-price earnings.

Upcoming catalysts are said to include first-quarter results on April 28 and the expected completion of the Castrol sale, which Edison feels could “trigger a buyback announcement” as net debt falls further.