BP Stock Price Forecast

BP is listed the London Stock Exchange (LSE) and the New York Stock Exchange (NYSE), and it’s one of the oil and gas mega caps competing with Exxon Mobile, Valero, Shell and Conoco Philips among others.

BP has a number of investible qualities which major fund managers can’t avoid considering over smaller more risky oil company stocks. BP isn’t just an oil company, it’s is also a major player in the gas sector and clean energy sector.

Stock Analyst’s Ratings

Recently, CNN’s 26 analyst panel offered its 12-month price forecasts for BP stock. They set a median target of $45.25, with a high estimate of $74.76 and a low estimate of $39.74. The median stock price forecast represents a +26.97% increase from its latest price of $35.64.

Zack’s gives BP a hold rating of 3 out of 5 with an average price target of $44.41 per share. That’s a 30% updraft.The Fool UK says BP benefits whether oil and/or gas prices go up or down. It is a huge trader in the energy markets and enables it ‘short’ oil and gas — that is, selling something now with the expectation of being able to buy it later at a lower price.

Consequently, BP can make just as much profit if oil and gas prices fall as if they rise. In 2022, BP’s trading team earned 14% of the group’s entire earnings.

The Fool UK reports that During Q1 2023, BP conducted $2.2bn in share buybacks from surplus cash flow. It is committed to using 60% of that cash flow for future buybacks this year. Companies who are buying back at this rate, can significantly reduce shareholder payouts for greater profitability.

But let’s not take our eye off the ball, because the oil and gas sector is forecast to boom, to reach $95 a barrel according to several industry analysts. With it’s tremendous vertical integration and diverse products and markets, it’s able to generate impress margins for excellent profits.

BP Stock Price last 12 months.
BP Stock Price last 12 months. Screenshot courtesy of Google Finance.

The Company has solid value to investors including these major factors, which fund managers demand before risking money in the oil and gas sector.

Established Market Presence: BP has a long-standing history and is recognized as one of the largest integrated oil and gas companies globally. Being listed on reputable exchanges underscores the company’s stability and credibility, making it an attractive investment option for many investors.

Liquidity and Global Reach: The LSE and NYSE are among the most liquid stock exchanges in the world. BP’s listing on these exchanges ensures that the stock has significant trading volume, allowing investors to buy and sell shares with ease. This liquidity also makes it possible for investors from various regions to access and invest in BP, facilitating global participation in the company’s growth.

Investor Confidence and Regulatory Oversight: The LSE and NYSE are renowned for their stringent listing requirements and robust regulatory oversight. The inclusion of BP on these exchanges indicates that the company has met the necessary standards and complied with regulatory guidelines. This, in turn, instills confidence in investors, as they can trust the company’s financial reporting and governance practices.

Global Exposure to Energy Markets: BP’s operations span multiple continents and regions, providing investors with exposure to diverse energy markets. This global footprint allows the company to capitalize on opportunities in different countries and benefit from the fluctuations in oil prices, demand, and geopolitical factors across the world. For investors seeking exposure to the energy sector, BP’s listing on major exchanges offers an avenue to participate in this industry’s dynamics.

Dividend Payments: BP has a history of paying dividends to its shareholders. For income-oriented investors, the company’s stock can be appealing due to its respected dividend track record. Dividend payouts provide a steady income stream and are a positive benefit to investor’s overall return on investment.

BP Current Stock Price

News About BP and its Stock

See more on investing in oil companies, and keep up to date on the latest economic forecast. which may aid in a resurgence of the oil market in 2024.

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