Citigroup bank believes that fair value is now reflected in the share price of BP (BP.L) and has revised its rating on the share to NEUTRAL from BUY.
Commenting, Citigroup said “”We think the market now better reflects the inherent value in BP. A good-news story around a self-help agenda, narrowing Russian discount rates and a favourable Macondo Phase II ruling have all driven the equity story in recent months,” in a note to investors this morning.
Citigroup retains its current target price of 455p and noted a plan by BP (BP.L) management to re-align the company with current oil prices.
“Cost-cutting is at the centre of BP’s self-help strategy. To date the extent of the ambition has not been announced, although a cost-cutting provision has (circa $1bn). We believe that the provision will increase and that BP will end up with a target that tackles around a 15% reduction in costs in the core upstream business segment,”
Trading in shares in BP (BP.L) are slightly lower this morning at 468p (-0.46%).
Citigroup bank believes that fair value is now reflected in the share price of BP (BP.L) and has revised its rating on the share to NEUTRAL from BUY.
Commenting, Citigroup said “”We think the market now better reflects the inherent value in BP. A good-news story around a self-help agenda, narrowing Russian discount rates and a favourable Macondo Phase II ruling have all driven the equity story in recent months,” in a note to investors this morning.
Citigroup retains its current target price of 455p and noted a plan by BP (BP.L) management to re-align the company with current oil prices.
“Cost-cutting is at the centre of BP’s self-help strategy. To date the extent of the ambition has not been announced, although a cost-cutting provision has (circa $1bn). We believe that the provision will increase and that BP will end up with a target that tackles around a 15% reduction in costs in the core upstream business segment,”
Trading in shares in BP (BP.L) are slightly lower this morning at 468p (-0.46%).
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