BP stock price target raised to $37 from $34 at TD Cowen on strong earnings

Published 06/08/2025, 19:46
BP stock price target raised to $37 from $34 at TD Cowen on strong earnings

Investing.com - TD Cowen has raised its price target on BP (NYSE:BP) to $37.00 from $34.00 while maintaining a Hold rating on the stock. Currently trading at $33.87, BP shows a strong YTD return of 17.09% and maintains an impressive 5.65% dividend yield, having maintained dividend payments for 34 consecutive years. According to InvestingPro analysis, BP appears undervalued based on its Fair Value calculations.

The price target increase follows BP’s strong quarterly earnings, which were boosted by robust operations and trading performance that outperformed its peers in the sector. With an EBITDA of $27.34 billion and a "GOOD" Financial Health score from InvestingPro, BP demonstrates solid operational performance.

TD Cowen noted that while the strong results are encouraging, the firm remains hesitant to extrapolate these positive outcomes, especially considering BP’s weaker-than-anticipated performance in the first quarter of 2025.

The research firm also highlighted BP’s large discovery in Brazil, though details provided by the company were limited. TD Cowen indicated that positive updates regarding this discovery could help reduce concerns about BP’s portfolio.

According to TD Cowen, inorganic cash flows are expected to drive BP’s debt lower in the second half of 2025, which could potentially support the stock’s near-term performance.

In other recent news, BP reported strong financial results for the second quarter of 2025, with an underlying net income of $2.4 billion. This performance was bolstered by solid downstream operations, effective trading activities, and improvements in volume, even as benchmark oil and gas prices were lower during the period. Following these results, Evercore ISI raised its price target for BP from $35.00 to $38.00, maintaining an Outperform rating. These developments highlight BP’s successful strategic initiatives and operational efficiency. The company’s robust financial performance has drawn positive attention from investors and analysts alike.

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