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Research Alert: CFRA Maintains Sell Opinion On Shares Of Bp
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Research Alert: CFRA Maintains Sell Opinion On Shares Of Bp
Nov 4, 2025 4:40 AM

07:25 AM EST, 11/04/2025 (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 raise our 12-month target price to USD31 (from USD23), based on a rolled-forward 2026 P/E of 11.2x, which reflects 0.25 SD below the 10-year average of 14.4x. BP's 9M 2025 replacement cost (RC) net profit of USD5.9B (-23% Y/Y) exceeded expectations, representing 81%-82%% of our 2025 forecast and consensus estimates. The Q3 2025 RC net profit of USD2.2B sequentially declined 6% from Q2's USD2.4B, primarily due to a higher underlying effective tax rate of 39% versus Q2's 36%. We raise our forecasts to a normalized EPS of USD3.09 (from USD2.77) for 2025 and USD2.78 (from USD2.66) for 2026 given that 9M 2025 came in above expectations. We maintain our Sell rating on expectations of continued price weakness given the stock's positive correlation of 60% to Brent crude oil price movements over the past five years amid expectations of further declines in oil prices against the backdrop of unwinding OPEC production quota cuts and a U.S. tariff regime that could catalyze slower global economic growth.

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