Equity research analysts at Credit Suisse have upgraded their recommendation on oil giant BP (LON:BP.) to 'outperform' from 'neutral' which it says is on valuation grounds after making a number of adjustments to their models, including the incorporation of the recently lowered Euro gas price forecast.
They also upped their target price to 500 pence per share (from 480 pence).
The broker added: "Bottom line, progress made on capital productivity and efficiency, as presented at the recent field trip in Baku, is impressive and should be applauded.
"This means that the company has (i) a better than expected cash cycle thereby somewhat de-risking dividend sustainability, and (ii) a larger than expected resource base that can be commercially developed, thereby reducing the risk of/need for bigger M&A."
At 2:17pm: (LON:BP.) BP PLC share price was +6.2p at 465.65p