Analysts express concerns over cashflows and price target
- BP downgraded to underweight at JPMorgan
- Cashflows increasingly leveraged to trading and working cap
- Price target cut to 550 pence
- Preference for Shell and TotalEnergies
- Potential for renewables-led clearing of the decks
- Fourth-quarter buyback may be scaled down to $1 billion
BP has been downgraded to underweight from neutral by JPMorgan following the release of its third-quarter results. Analysts are concerned about the company’s cashflows, which are increasingly dependent on trading and working capital. As a result, the price target for BP has been cut to 550 pence. JPMorgan analysts have a clear preference for Shell and TotalEnergies. They also anticipate a potential clearing of the decks in the renewables sector and suggest that the fourth-quarter buyback may be scaled down to $1 billion.
Public Companies: BP (BP), Shell (SHEL), TotalEnergies (TTE)
Private Companies:
Key People: Christyan Malek (Analyst)
Factuality Level: 7
Justification: The article provides information about BP being downgraded by JPMorgan and the reasons behind it. It also mentions the analysts’ preference for Shell and TotalEnergies. The information seems to be based on the analysts’ opinions and the article does not provide any counterarguments or alternative perspectives. However, the article does not contain any misleading information, sensationalism, or obvious bias. Overall, the article seems to be factually accurate but lacks a more comprehensive analysis.
Noise Level: 7
Justification: The article provides some analysis of BP’s third-quarter results and the downgrade by JPMorgan. However, it lacks evidence or data to support the claims made by the analysts. It also does not provide any actionable insights or solutions for the reader. The article briefly mentions a preference for Shell and TotalEnergies without providing a clear rationale. Overall, the article contains some relevant information but lacks scientific rigor and intellectual honesty.
Financial Relevance: Yes
Financial Markets Impacted: BP
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the downgrade of BP’s stock by JPMorgan, which could impact the financial markets and investors interested in BP. However, there is no mention of any extreme event.
