Fed’s Powell opens door to potential rate cuts at Jackson Hole
Investing.com - Melius Research initiated coverage on BP (NYSE:BP) with a Buy rating and a price target of $66.00 on Wednesday. According to InvestingPro data, BP currently trades at $33.82, with analysts showing increasing confidence as 4 analysts have recently revised their earnings estimates upward.
The research firm’s decision comes as BP pivots back to its oil and gas focus after what Melius described as "operational missteps and an aggressive push into clean energy."
The energy giant is now placing less emphasis on renewables while concentrating on cost reductions across its operations, according to Melius.
BP’s renewed strategy includes a stronger focus on disciplined capital allocation as part of its operational adjustments.
The company is also prioritizing operational excellence as it rebalances its portfolio toward traditional energy sources, Melius noted in its initial coverage report.
In other recent news, BP reported strong second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share of $0.90, exceeding the forecasted $0.67, which marks a significant surprise increase of 34.33%. BP’s revenue also outperformed predictions, reaching $46.63 billion compared to the expected $42.18 billion, reflecting a 10.55% positive surprise. In addition to the earnings results, BP’s recent Bumerangue discovery has led to an upgrade by Scotiabank (TSX:BNS), which raised BP’s stock rating from Sector Perform to Sector Outperform. Scotiabank increased its price target for BP to $42.00 from $34.00, citing the discovery’s potential to significantly impact BP’s upstream portfolio. These developments highlight BP’s strong financial performance and promising future prospects, as noted by Scotiabank.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.