BP Stock Earns Upgrade on Free Cash Flow Potential

BP sports an over 17% year-over-year lead

Digital Content Manager
Feb 25, 2022 at 10:19 AM
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Oil and gas name BP plc (NYSE:BP) is attracting some analyst attention this morning. More Specifically, RBC upgraded the equity to "outperform" from "sector perform." The firm noted it expects substantial free cash flow out of BP over the next few years, and added it does not see the company's exposure to Russia -- via its shares of energy concern Roseneft -- having a severe impact. These comments follow sharp rises in oil prices and new sanctions imposed on Russia, following its full-scale invasion of Ukraine. 

Last seen up 3.8% at $30.27, the security is attempting to recover from a recent tumble off a Feb. 11, two-year high of $34.15. Shares shed 6.3%  in the previous session -- their worst daily percentage drop since February 2021. Support at the 120-day moving average contained these losses, however. Longer term, BP still sports a 17.6% year-over-year lead.

The brokerage bunch was split towards BP stock coming into today. Of the 12 analysts in question, six called the equity a "buy" or better, while the remaining six said "hold" or worse. Should some of these firms follow in on RBC's footsteps, BP could surge even higher.

What's more, the security's Schaeffer's Volatility Scorecard (SVS) sits at 77 out of 100. This indicates BP has exceeded option traders' volatility expectations during the past year -- a boon for options buyers.



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