- BP (BP +0.9%) bumps higher as BMO analyst Daniel Boyd initiates coverage with an Outperform rating and $53 price target, believing BP's multi-year transformation is "on the cusp of paying dividends" and noting the company generates competitive return on capital employed after years of lagging.
- Boyd also says BP is not reliant on any one mega-project and has one of the most diverse pipelines of new projects.
- BP is Boyd's top oil major stock pick, but he is also bullish on Chevron (CVX +1.6%), which he rates at Outperform with a $165 target, citing its strong presence in the Permian Basin and sustained 5% dividend growth.
- Boyd also offers praise for Exxon Mobil (XOM +1%) because of the company's "best in class" upstream portfolio, but rates the stock only at Market Perform due to valuation and risks to near-term guidance.
- Total (TOT +1.3%) and Royal Dutch Shell (RDS.A +1.1%) are rated Market Perform with respective $62 and $65 stock price targets.
- BP's average Sell Side Rating is Outperform, its Seeking Alpha Authors Rating is Bullish, and its Quant Rating is Neutral.