BP stock rating upgraded by Scotiabank to Sector Outperform on Bumerangue discovery

Published 14/08/2025, 13:24
BP stock rating upgraded by Scotiabank to Sector Outperform on Bumerangue discovery

Investing.com - Scotiabank upgraded BP (NYSE:BP) from Sector Perform to Sector Outperform on Thursday, raising its price target to $42.00 from $34.00. According to InvestingPro data, BP currently trades at $34.31, with analyst targets ranging from $28.10 to $48.00, suggesting potential upside based on the consensus view.

The upgrade comes after BP’s Bumerangue discovery, which Scotiabank believes has "single-handedly changed the longer term trajectory of BP’s upstream portfolio" due to its size and attractive fiscal terms.

While first oil production from the discovery is not expected until 2031 or later, Scotiabank indicates the find addresses one of investors’ biggest concerns about the sustainability of BP’s upstream portfolio.

The bank’s preliminary base case envisions a three FPSO development that could provide BP with approximately 550,000 barrels per day of oil production by the mid-2030s, potentially becoming the company’s largest single source of production growth and its top producing asset.

For context, BP forecasts its 2025 production at approximately 2.3 million barrels of oil equivalent per day, with 2030 production expected between 2.3-2.5 million barrels of oil equivalent per day, excluding potential asset sales of around 200,000 barrels of oil equivalent per day.

In other recent news, BP PLC reported impressive second-quarter earnings for 2025, significantly surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.90, which was notably higher than the forecasted $0.67, marking a 34.33% surprise increase. BP’s revenue also exceeded predictions, reaching $46.63 billion compared to the anticipated $42.18 billion, a 10.55% surprise. These results highlight BP’s robust financial performance in the quarter. There were no recent mergers or acquisitions announced by the company. Additionally, there have been no recent upgrades or downgrades from analysts regarding BP’s stock. Other company news was not disclosed in the recent updates. These developments underscore BP’s strong position in the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.