BP reinstated with Buy rating at BofA/Merrill

|About: BP p.l.c. (BP)|By:, SA News Editor

BP (BP +1.1%) is reinstated at BofA/Merrill with a Buy rating and an implied $52 price target, as one of the top picks in the firm's global supermajor oil peer group.

The firm believes BP offers a combination of best in class shareholder returns, free cash flow coverage and near-term visibility on operating cash flow recovery, yet the shares trade in-line with Shell.

Another positive factor cited is that BP’s expected gearing should offer further cushions in the event of falling commodity prices, or for enhanced shareholder returns; BP’s Gulf of Mexico spill also is believed to be cushioned.