BPUK:BP was downgraded to underweight from neutral at JPMorgan, which cut its target price by 11% to 550 pence. “This year is revealing BP’s cashflows as increasingly leveraged to wider standard deviation variables – notably trading and working cap. The second order has emerged as a weakening risk/reward on future cash return (60% surplus cash), particularly as volatility moderates across parts of the energy complex,” said the analysts, who also warned of a more clearing of the decks in renewables when there’s a new CEO. The firm said it prefers Shell UK:SHEL, TotalEnergies FR:TTE and Eni IT:ENI.
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