Raymond James Lifts PT on BP p.l.c. (BP) to $40 From $38, Keeps an Outperform Rating

BP p.l.c. (NYSE:BP) is one of the best undervalued stocks to buy under $50. On November 4, Raymond James lifted the price target on BP p.l.c. (NYSE:BP) to $40 from $38 while keeping an Outperform rating on the shares. The firm told investors that BP p.l.c. (NYSE:BP) is traversing the right direction with its strategy reset from earlier in the year. However, some investors are pushing for a faster timeline.

Raymond James further stated that while BP p.l.c. (NYSE:BP) is trading at a material discount, several factors support a favorable risk-reward in the shares, including the company’s new strategy, efforts to divest non-core assets, and to re-prioritise value in the portfolio.

Murray Auchincloss, BP p.l.c. (NYSE:BP) Chief Executive Officer, stated on the same day that six of its major oil and gas projects planned for 2025 are online, with four running ahead of schedule. The company sanctioned its seventh operated production hub in the Gulf of America, and has had additional exploration success. BP p.l.c. (NYSE:BP) also anticipates the full year divestment proceeds to be higher, supported by approximately $5 billion of completed or announced disposal agreements.

In its Q4 2025 guidance, management reported that it expects the reported upstream production to be “broadly flat” when compared to fiscal Q3 2025. Within this, BP p.l.c. (NYSE:BP) expects slighty higher reported production from oil production and operations, and production from gas & low carbon energy to be lower.

Headquartered in London, United Kingdom, BP p.l.c. (NYSE:BP) is an integrated oil and gas company that provides carbon products and services. Its operations are divided into the Gas and Low Carbon Energy, Oil Production and Operations, and Customers and Products segments.

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Disclosure: None. This article is originally published at Insider Monkey.