BP Shares Draw Bullish Analyst Calls After Q1 Earnings Beat

BP (LON: BP.) shares are attracting renewed analyst interest after two upgrades in a single session, with Wall Street pointing to stronger earnings, improving fundamentals and new management as reasons for optimism.

Argus upgraded BP to Buy from Hold, citing the oil major’s first-quarter earnings beat. The firm credited increased upstream production, materially higher realized refining margins and strong oil trading contributions, though it noted those gains were partly offset by lower price realizations.

RBC Capital also raised its rating on BP to Outperform from Sector Perform, setting a price target of 700 pence.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

The bank believes the current commodity price environment gives BP another opportunity to reduce its debt load, and pointed to recent exploration success and a new management team as an “opportunity to restore investor confidence” in the shares.

The upgrades add to a broadly constructive analyst picture. According to TradingView data, 14 of 31 analysts covering BP carry a Buy rating, while 13 recommend Hold and four advise Sell. The consensus price target stands at 621.3 pence, implying a potential upside of roughly 15% from Monday’s close.

BP shares have climbed more than 24% year to date, buoyed in part by higher oil prices tied to the ongoing conflict in the Middle East.