Encouraging BP News, but Investment Case Unchanged

BP's third quarter results and near-term strategic goals boosted shares on Tuesday, but uncertainties remain

Stephen Simko, CFA 26 October, 2011 | 11:37AM
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BP (BP.) reported third-quarter results that were in line with our expectations. The most notable news was management's outline of its near-term strategic goals and plans to revitalise the firm. Although BP's stated goals are plausible, details were a bit light, as management is waiting until the annual strategy day in February to fully flesh these plans out. A notable highlight is that BP will sell a further $15 billion of assets during 2012-13 in addition to the $30 billion expected by year-end.

Though BP is doing everything it can to move forward, the uncertainties compared with other majors remain high. In our view, the BP story is unchanged, and we are maintaining our fair value estimate.

Read the full Morningstar Research Report on BP here--available to Premium subscribers.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
BP PLC466.25 GBX-0.01Rating

About Author

Stephen Simko, CFA  is a senior stock analyst at Morningstar.

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