Here’s Why We Believe BP’s Stock Is Worth $36 Per Share

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The London-based oil and gas major, BP Plc. (NYSE:BP), has been on a downhill track since it posted weak June quarter 2016 results last month. The integrated company had relied primarily on its downstream operations to mitigate the impact of its weak upstream operations owing to the plummeting commodity prices over the last two years. While the company had been successful in its attempt over the last few quarters, its refining operations did not support its results in the last quarter. As a result, the company’s stock has declined almost 2.5% over the last 15-20 days.

Thus, based on the ongoing market trends and company guidance, we have revised our price estimate for BP to $36 per share, which is roughly 6% higher than its current market price. Below, we provide the rationale behind the revision of our price estimate.

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Have more questions about BP Plc. (NYSE:BP)? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for BP

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