Asia FX moves little with focus on US-China trade, dollar steadies ahead of CPI
Investing.com - Berenberg upgraded BP Plc. (NYSE:BP) from Hold to Buy and raised its price target to GBP5.00 from GBP3.85, citing significantly stronger results through the second quarter of 2025.
The upgrade comes as BP shows an improved free cash flow outlook, supported by lower capital expenditure, progress on its cost-cutting program, and recovery in its downstream business, according to Berenberg.
The investment firm highlighted recent exploration success, particularly the potential at the Bumerangue field in Brazil, which may provide investors confidence in the medium to longer-term outlook for BP’s upstream business.
Berenberg noted that BP’s new chairman is beginning his appointment with further reviews on both costs and the broader portfolio, indicating an ongoing focus on shareholder returns.
The company’s $20 billion divestment plan should enable both lower net debt and continuation of attractive buybacks in 2026, leaving a 10% total cash shareholder return that includes a 6.2% dividend yield, Berenberg added.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.