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Barclays reiterates BP is its 'top-pick' in the sector ahead of Q1 results
Barclays reiterated its endorsement of BP's shares as its 'top-pick' in the sector, noting how the sector had only performed 'in-line' with the wider market since the beginning of 2018, even as analysts had bumped up their profit estimates by 10%.
That, they said, appeared to them to be "inconsistent", leading them to reaffirm their 'positive' stance on the sector and their 'top-pick' stance on BP specifically with a target price of 675p.
Separately, Shell was kept at 'overweight' with a target price of 3,000p, alongside Total (target price: 60 and OMV (target price: 60).
The broker also noted how European Intergrated Oils tended to always miss analysts' consensus forecasts in the fourth quarter, only to beat them "strongly" in the first quarter.
"Following a weaker than expected set of 4Q results, we forecast 1Q earnings up 14% q/q, helped by the combination of a seasonally lower cost base, a higher oil price and better contribution from trading."
Barclays also said that refining margins at four-year lows would in many cases probably be offset by better petrochemical margins.
That, they said, appeared to them to be "inconsistent", leading them to reaffirm their 'positive' stance on the sector and their 'top-pick' stance on BP specifically with a target price of 675p.
Separately, Shell was kept at 'overweight' with a target price of 3,000p, alongside Total (target price: 60 and OMV (target price: 60).
The broker also noted how European Intergrated Oils tended to always miss analysts' consensus forecasts in the fourth quarter, only to beat them "strongly" in the first quarter.
"Following a weaker than expected set of 4Q results, we forecast 1Q earnings up 14% q/q, helped by the combination of a seasonally lower cost base, a higher oil price and better contribution from trading."
Barclays also said that refining margins at four-year lows would in many cases probably be offset by better petrochemical margins.
Related share prices |
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BP (BP.) share price |
Royal Dutch Shell 'B' (RDSB) share price |
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