BP stock surges on ‘Buy’ ratings after record quarterly earnings
BP shares received a boost recently with Finanztrends and Berenberg Bank both issuing 'Buy' ratings. This comes after BP's strong quarterly results and a positive outlook. The company's stock, however, remains slightly below its February peak on eBay.
BP's quarterly results, announced on November 4, 2021, impressed analysts. Revenue reached $48.42 billion, surpassing expectations. Adjusted profit also came in at $2.2 billion, beating forecasts. Following these results, Finanztrends issued its first 'Buy' rating for BP shares in a long time, citing the strong performance and a positive fundamental outlook.
Berenberg Bank also maintained its 'Buy' recommendation. Additionally, Wall Street Zen upgraded its rating from 'Hold' to 'Buy'. BP's stock price, however, remains roughly 7% below its February best buy on eBay.
BP is also active in share buybacks and asset sales. It announced the repurchase of an additional 1.5 million shares under its $750 million buyback program. Furthermore, expected proceeds from asset sales for 2025 have been raised to over $4 billion. This refocusing on core oil and gas business and divestment of non-strategic assets is part of CEO Murray Auchincloss' strategy.
BP's strong quarterly results and positive outlook have led to multiple 'Buy' ratings from financial institutions. The company is also active in share buybacks and asset sales. However, the next major test for BP stock will come with the quarterly update in January. An extension of a key fuel station partnership with Frasers could also provide momentum at the start of the week.
