JPMorgan Upgrades BP Stock Rating to Overweight

JPMorgan upgraded the stock rating of BP from neutral to overweight and raised its price target to 675 pence from 550 pence. Analysts at the firm stated that BP's balance sheet has improved to the point where the stock is "no longer a poison pill."

The financial services firm estimates that BP's total financial obligations will decrease by 50% by the end of 2027. This recovery is expected to align BP's gearing metrics with its European peers and potentially lead to distribution growth. Additionally, analysts project that BP is developing an upstream pipeline capable of supporting annual volume growth of approximately 3% between 2030 and 2035.

In a related move, JPMorgan downgraded TotalEnergies from overweight to neutral. The firm cited the company's high direct asset exposure in the Middle East and the risk of windfall taxes as the primary reasons for the downgrade.