Successful breach accomplished, follow-up actions required
BP, the British energy giant (WKN: 850517), has recently seen a fresh buy signal from investors. This comes as Goldman Sachs maintains a "Buy" rating for BP's dividend stock, setting a price target of 450 Pence (approximately 5.19 Euros).
For those already invested in BP, analysts advise continuing to hold the shares. The next significant resistance level for BP's stock is at the aforementioned 450 Pence. If this resistance level is overcome, the next target for BP's stock would be the year's high at 471 Pence.
Recent analyst forecasts for BP's stock price in USD show an average price target around $34.69 to $36.39, with a consensus rating of "Hold." When converted to Euros, assuming a rate of 1 USD = 0.91 EUR, this corresponds to approximately €31.85 to €33.93.
A summary of the latest analyst data reveals that seven analysts rate BP with an average price target of $34.69, expecting about a 1.05% increase over the next year, consensus rating "Hold" with a target range of $29 to $42. Sixteen Wall Street analysts average a $36.39 price target with a high of $50 and a low of $26.50, with recommendations mostly "Hold," some "Buy," and a few "Strong Buy."
However, it's important to note that Jefferies recently downgraded BP from "Buy" to "Hold" and cut the price target from $40.80 to $29.00.
Despite the risky medium to long-term strategy of BP, the stock exchange strategy prioritizes maintaining high dividends and share buybacks. BP is among the companies that most exceeded expectations in the last quarter.
In contrast, Shell remains the "Top Pick" due to planned share buybacks, disciplined investments, and a solid balance sheet, according to analysts at Jefferies. A stop-loss for BP should be maintained at 3.50 Euros for now.
Analyst Giacomo Romeo continues to express economic concerns for the 2025/26 fiscal year and expects falling oil prices to put increasing pressure on companies. It's worth noting that BP is one of the companies he sees as having potential for selling business units in the coming years.
In conclusion, analysts currently advise holding BP shares with moderate upside expected, and recent price targets suggest a range roughly between €26 and €33, depending on specific analyst and timing. For exact Euro conversions, use the prevailing USD/EUR rate on the day of your decision.
- With Goldman Sachs maintaining a "Buy" rating for BP's dividend stock, investors might want to consider investing in the finance sector, specifically in the stock-market.
- For those already invested in BP, they might find it wise to continue holding the shares, as the next significant resistance level for BP's stock is at 450 Pence, with the next target being the year's high at 471 Pence.
