Is BP Stock a Buy After Q1 Earnings? 3 Analysts Weigh In.

British Petroleum (NYSE:BP) stock is up more than 7% today after the oil producer reported its strongest quarterly results in more than a decade.

The BP (BP) logo on a sign against a blue sky with clouds
Source: JuliusKielaitis / Shutterstock.com

BP’s strong quarter was due to elevated oil prices that continue to trade above $100 per barrel. Investors should also note that it achieved these results despite taking a $24 billion writedown from exiting its operations within Russia following that country’s invasion of Ukraine.

The non-cash writedown of its 19.75% stake in the Rosneft oil project in Russia pushed BP into a quarterly loss of $20.4 billion, its biggest ever. This loss was lower than BP’s initial estimates of $25 billion. Additionally, BP still reported net earnings of $6.2 billion in the first quarter. This was the strongest net profit figure since 2008.

Adding to the positive news, BP announced that it is accelerating its quarterly stock repurchases to $2.5 billion before the end of the current second quarter. The company previously said it would buy back $1.5 billion on a quarterly basis.

So, given the better-than-expected results and share repurchase program, is BP stock a buy following earnings? Here’s what three analysts have to say.

BP Stock Price Predictions

  • Wells Fargo has an “underweight” rating on BP stock and a price target of $29, implying a 7% decline from the current share price.
  • Raymond James has a “buy” rating on BP and a price target of $39 a share, suggesting 26% upside from current levels.
  • Morgan Stanley maintains an “overweight” rating on BP stock with a price target of $35, which would be 13% higher than where the shares currently trade.

What’s Next

Among 26 professional analysts who cover BP stock, the median price target is currently $35.90, which implies 16% upside from current levels. A majority of analysts consider BP stock to be a “buy” and that investors should make money on the company’s shares. Keep in mind that analyst ratings are usually revised following a company’s quarterly results, and that energy prices remain volatile as the war in Ukraine drags into a third month.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.


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