BP Still Undervalued, say Analysts

Morningstar analysts leave fair value estimate for FTSE 100 oil giant unchanged after a fall in upstream and downstream profits due to weaker oil prices

Allen Good 30 April, 2019 | 2:19PM

BP

BP’s (BP.) first-quarter earnings largely met Morningstar analyst expectations while key guidance items remain unchanged. As a result, our fair value estimate of 670p remains unchanged, above the current price of 560p. Profits fell to $2.4 billion from $2.6 billion a year ago. Upstream profits fell to $2.9 billion from $3.2 billion last year on lower oil prices and turnaround activity in the Gulf of Mexico offset by strong gas marketing and trading.

BP retains a four-star rating from Morningstar, meaning that is currently below its fair value estimate.

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About Author

Allen Good  Allen Good is a senior stock analyst covering the oil and gas industries.

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