Jefferies upgraded BP (BP) to Buy from Hold with a price target of $42.30, up from $38.60. The analyst expects the stock to continue to close its valuation gap versus peers, supported by the company’s greater focus on distributions, reduced capex risk and relatively conservative consensus earnings growth expectations. Under both the firm’s macro assumptions and strip prices, BP should be able to step up its buyback in the second half of 2024 to $3B per quarter, which it says would result in total yield growing to 14.5% from 11.6%, by far the highest in the sector after Equinor (EQNR).
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