06:20 AM EDT, 05/07/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target price to $38 (from $36), reflecting a P/NAV of 1.5x, above the peer average of 1.2x, justified in our view by BP's superior reserve life. We leave our EPS forecasts unchanged. Q1 2024 adjusted EBITDA of $10.3 billion (-21% Y/Y; -2% Q/Q) was within consensus expectations, but adjusted net profit of $2.7 billion (-45% Y/Y; -9% Q/Q) was 6% short with the deviation attributable to a higher underlying tax rate of 43% (Q1 2023: 39%). Broadly, Q1 2024 saw higher hydrocarbon production and resilient refining margins, mitigating the impact of softer oil and gas prices. OCF weakened to $5.0 billion (-34% Y/Y), but we are comforted that it was owed to the $2.4 billion working capital build and did not impact Q1 2024 cash return (share buyback of $1.75 billion and DPS of 7.27 $ cents). For Q2 2024, BP guides for lower hydrocarbon production but expects strong Customer business and steady refining utilization. Also, it introduced a $2 billion cash cost savings target to be achieved by 2026.