BP stock price target raised to $38 by Evercore ISI on strong Q2 results

Published 06/08/2025, 18:02
BP stock price target raised to $38 by Evercore ISI on strong Q2 results

Investing.com - Evercore ISI has raised its price target on BP (NYSE:BP) to $38.00 from $35.00 while maintaining an Outperform rating following the company’s second-quarter performance. Currently trading at $34.28, the $86.35 billion oil giant appears undervalued according to InvestingPro analysis.

The oil major delivered stronger-than-expected results in the second quarter, driven by solid downstream performance, trading activities, and sequential volume improvements, despite lower benchmark oil and gas prices during the period. With revenue of $184.8 billion in the last twelve months and a "GOOD" Financial Health score from InvestingPro, BP continues to demonstrate operational strength.

Evercore ISI highlighted BP’s progress on cost reduction initiatives, noting these efforts are building confidence in the sustainability of shareholder returns even in a challenging external environment. The firm views these operational improvements as significant for a company where market valuation continues to reflect investor skepticism.

The research firm pointed to BP’s de-leveraging efforts as a critical factor for reducing commodity volatility in its financial performance, with ongoing major divestitures including Castrol identified as near-term targets to watch.

Evercore ISI also noted BP’s upstream business is making progress with major project starts, exploration success, and expanded contracts with national oil companies, demonstrating momentum in the company’s operational strategy despite initial lukewarm investor reception to its strategic plan announced in February.

In other recent news, BP PLC reported its earnings for the second quarter of 2025, highlighting a strong financial performance with an underlying net income of $2.4 billion. This performance reflects BP’s strategic initiatives and operational efficiency. Although the company’s stock saw an increase, the earnings report itself remains the focal point for investors. The positive financial results indicate a favorable market response to BP’s ongoing strategies. These developments are part of the recent news surrounding the company. The earnings figures are crucial for investors assessing BP’s financial health. Analysts and investors alike will be closely monitoring how BP continues to execute its strategies in the coming quarters.

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